02 August 2010

Msia Tech Sector: Still have potential upside?


If you had invested into MPI and Unisem for the past one year, I congratulate you for the "sweet" returns. At this juncture, is it still good?

As written in my previous article, I highlighted that the tech-stocks maybe in the brink of peak. The chart below double-confirm with what I said. From there, global chips sales had peaked in March this year and now are showing signs of slowing down. If the share price of your darling stock still holds up well, this means that it is no longer cheap. Rule of thumb, CHIP sales reflecting how CHEAP is tech-stocks.


This is a turning point where rising raw materials prices and stronger Ringgit would affect the manufacturing sector. It is wise to take profits now.

Do not worry, 2nd quarter profit still considered okay. You still have plenty of times to unwind your holdings.


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