China Minzhong: What are we to do?

Some might wonder if it is time to sell shares of China Minzhong and to lock in some sizeable gains. Well, it is back to the basic question of: "What are we after?"

If we believe that China Minzhong's shares are still undervalued, then, fundamentally, it is not the time to sell. However, if we do not care about fundamentals and are in it for a trade, then, that is a different motive which would dictate that we act differently.

To any casual observer, it is obvious that China Minzhong's share price is having difficulty breaking resistance to go higher. Look at the daily chart and we can see why.

Daily chart.

China Minzhong's price movement seems to be losing momentum as the MACD forms lower highs and the CMF shows money flowing out. Continuing price weakness in the near term is not surprising.

Indeed, price could weaken to support at 80c which is where we find the merged 50d and 20d MAs. A much stronger twice tested support is quite obviously provided by the fast rising 100d MA. In the event of a whipsaw in a correction, this MA could be tested once again for support.

Weekly chart.

For someone with a longer term perspective, no analysis is complete without looking at the weekly chart and bulls would like what they see there. Quite obviously, there is a break out from resistance and where is the next resistance level? The descending 100w MA currently at $1.05? Possibly. Immediate support is at 78c. Do a quick risk/reward analysis and it would seem that being long China Minzhong makes more sense in the longer term.

Ultimately, what we decide to do depends on our motivation for being vested as well as our risk appetite. Remember, TA is about probability and never certainty.

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ASSI received US$15m offer!

UPDATED (29 Dec 16):

I was just offered $2.5 million on Facebook! What did I do? I rejected, of course. Please lah. $2.5 million only? It is nothing compared to the $15 million I was offered before.
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Today could be an auspicious day. Today could be a historic day. Today could be a fortunate day. However, I laughed so hard that I think today is an amusing day. 

Read on.

From the desk of the

Chief Account Officer
Nigerian National Petroleum Corporation,
NNPC -Nigeria.

Attn: Sir,

Good day. I know this mail will come to you as a surprise but I need to contact you because of the urgency and confidentiality of this business transaction. I am Chief Account officer of the Nigerian National Petroleum Corporation (NNPC).

I have a deal here in my office I need a foreign partner to execute with me. I and my colleague over invoiced a contract payment valued US$50million. We awarded contracts for the supply and maintenance of all the oil pipelines and oil drilling equipments for the nation oil wells to some foreign contractors valued US$103billion, which we over invoiced US$50 million addition to the total contract sum.

Now as a matter of fact, most of the contractors have been paid and the remaining contractor’s payments are under process to be paid to them. With that, I and my colleague have decided to include you among these remaining contractors to process the sum of the US$50Million in your company or in your name to claim it for our mutual benefit.

So I am now contacting you to present you as the sub-contractor who has this amount of US$50million to be paid for the supply of heavy oil drilling equipments used in recent overhauling of the refineries.

I will advice you furnish me with your personal information including your personal cell phone number and the name of your company with address to enable me register it with our cooperate affairs commission in charge of allied and companies registration as an indigenous company.

It is mandatory that any foreign company must be registered in this country. Also with your acceptance to execute this business with me, I need to be sure of your confidentiality towards the conclusion of this deal, you will be given 30% of the total amount, 5% map out for re-fund of expenses incur by any of the parties, while I and my colleague will take 65% once the money gets into your company account in your country.

Also with my position here, I can officially arrange with you to be lifting 2 or 4million barrels of Crude Oil per month by getting a year or two years crude Oil allocation contract in your name and company name whether you are here or not. With this we can make more money from the oil lifting here in Nigeria.

I will detail you more on this once I get your response.

Thank you and hope to hear from you as soon as possible. Send me your cell phone number to call you for more details.

Best Regards

Chief Account Officer (N.N.P.C)

Very nicely crafted. Now, what would you do if you were to receive an email like this?

Imagine ASSI rubbing shoulders with high ranking (corrupt) officials from Nigeria. Tsk, tsk. In this case, they are probably bogus high ranking (corrupt) officials. Double tsk, tsk!

OK, I have to go say the Lord's Prayer now.

Related posts:
1. Advice from a fraudster.
2. Taking candy from a baby.

P.S. To me, there is no short cut to wealth creation. We could try our luck at TOTO once in a while but what are the chances of winning? Of course, we might end up having to share the big prize money with 20 other winners too!

Wealth creation is best done with both feet on the ground and walking down well trodden paths.