DFTZ & Jack Ma 3 Nov - Stocks to Watch?

Here we go again~ Jack Ma is coming to Malaysia again!!! Since his last arrival in Malaysia on 22 March 2017, a few technology counters had been goreng-ed up. Rumours had been spreading around that Jack will be acquiring a Malaysia company for the purpose of DFTZ. But i am not sure how true are the rumours or is this really his intention.

Jack Ma's first visit to Malaysia on 22 March 2017[1]

Now, he is coming to Malaysia on 3 November 2017. And Digital Free Trade Zone (DFTZ) goes live!!!

Mari mari[2]

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DFTZ is now ready to go live with the launch of its logistics operations and Najib will flag-off more than 1,500 Malaysian small and medium enterprises (SMEs) for them to begin their export journey. Among others, DFTZ will provide physical and virtual zones to facilitate SMEs to capitalise on the convergence of exponential growth of the Internet economy and cross-border e-commerce activities[2].

The set-up will include an e-fulfillment hub, satellite services hub and an e-services platform to stimulate growth in electronic trade which will also function to support Internet companies to trade goods, provide services, innovate and co-create solutions.

Malaysia Digital Economy Corporation (MDEC) is confident DFTZ will boost Malaysia’s e-commerce roadmap that was introduced in 2016, aimed at doubling the nation’s e-commerce growth and increase the Gross Domestic Product contribution to RM211 billion by 2020. The government, via its budget tabling, also announced an allocation of RM83.5 million for infrastructure construction for the first phase of the DFTZ in Aeropolis, Kuala Lumpur International Airport (KLIA), to create a regional gateway for e-commerce[2].

Of course i do not know which counter will be goreng-ed up again. But by looking at the chart, there are some fishy activities going on at these counters. Whether it is really due to some going-to-be-announced activities or just purely being speculated around. Only time and Mr Market will tell. Remember, the counters i'm going to mention are for reference and case study purposes only. I am going to talk on the Technical Charts only. I am not spreading or speculating around~

1. EFFICEN

EFFICEN Daily Chart

On 23 March 2017, a day after DFTZ, EFFICEN rised up to 72%!!! EFFICEN is our CHAMPION~ After March, EFFICEN went for hibernation for a long time. Till now the volume is not so active. Just recently, EFFICEN announced they are proposing to acquire Kaapagam Technologies Sdn Bhd, a company is an IT and cyber security product development and consultancy company[3]. The current support is 0.415 while the resistance is at 0.500.

2. CUSCAPI

CUSCAPI Daily Chart

CUSCAPI rised 28%! After March, CUSCAPI had been going sideways until recently, it's active again. Notice the volume are becoming more active. SAM20 had also crossed over SMA40, signifying a mid term bullish. The support for CUSCAPI is currently 0.34

3. REV

REV Daily Chart

For REV, it spiked up on 22 March 2017. It rised 23%! But the next day, it gapped up but closed as a bearish engulfing, but did not cover the gap. Look at the volume. It had also gained a lot of attention from the market. REV also announced a special dividend of 44 sen in August. Currently, REV is in uptrend. 

4. SYSTECH

SYSTECH Daily Chart

SYSTECH rised up to 13%, and had been in uptrend after that. There are also some announcement of corporate exercise done by SYSTECH. SYSTECH had acquired a company called Rofarez Solutions Sdn Bhd, which later changed name to Syscode Sdn Bhd. Syscode Sdn Bhd is engaged with cloud software solutions[4][5]. SYSTECH is currently in sideway and i noticed that there might be a chance for SYSTECH to spike up due to the golden triangle which it is now forming.

5. SEDANIA

SEDANIA Daily Chart

SEDANIA noly rised up to 5%, probably the weakest of all. But on the day itself, it went to the highest of 0.385 before facing the selling pressure and closed back at 0.3. Since then, SEDANIA had been in a yoyo state, sideway around 0.30 to 0.34 with normal volume. But if we notice the chart, SEDANIA is forming a symmetrical triangle, most probably, its a golden triangle. Due to SEDANIA's partnering with Cloudera in the data analytics, which is a part of future trend. SEDANIA is definitely a counter to be alert of[6]. The support is 0.300 with the resistance at 0.375.

From EFFICEN, CUSCAPI, REV, SYSTECH to SEDANIA, i am not sure whether these counters are related to Jack Ma's DFTZ, or all of them are not related. But certainly, out of these 5, some counters have attractive chart patterns which we can use to operate for short to mid term. 

November is another busy month with full release of QR. Hence, my advice is always the same, remember the reason you buy is the reason you sell. Stick to your strategy and make sure your operations follows your strategy strictly.

And if you want to learn more about stock investment, please feel free to drop me a message in my FB page or you can PM me.

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Let's Ride the Wind and Gainvest

Gainvestor 10sai

2 November 2017

11.36pm

Sources:

[1]: FBMKLCI MARCHing April: http://gainvestor10sai.blogspot.my/2017/04/fbmklci-marching-april.html
[2] DFTZ goes live on 3 Nov: https://www.nst.com.my/business/2017/11/298317/%C2%A0digital-free-trade-zone-goes-live-nov-3
[3]: http://www.bursamalaysia.com/market/listed-companies/company-announcements/5562565
[4]: http://www.bursamalaysia.com/market/listed-companies/company-announcements/5505493
[5]: http://www.rofarezsolutions.com.my/
[6]: https://www.digitalnewsasia.com/business/sedania-innovator-becomes-cloudera-gold-partner-sea

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