KS Energy privatised.....Remember this was a pick of mine for 2011. Daylight robbery.....

Had to write a post on monday rather than over the weekend because I was too busy preparing for some lame presentation which caused me literally a sleepless night. Do not think this will be a long post because my eyes are close to shutting at this moment.

Last week, we saw the market finally breaking the 6 weeks of negative returns on the S&P500 and Dow Jones. However last week was triple witching week which often leads to positive returns for the week. As for the week after a triple witching week almost always means trouble for the market. Since the first quarter of 2000, only 13 of 40 weeks after a TWW were positive, none of these were after a June TWW however.

The June stats are so bad, in fact, the week after a June Triple Witching Week has been negative for the Dow Jones Industrials 19 out of the last 19 years. June is ranked as only the 10th best month for the S&P 500 historically and the 11th best for the Dow. Basically what that means is June is possibly one of the worse months for stocks in a year.

Even though history paints a bleak picture for the markets, technically, the S&P500 has hit their up trend line support established over since markets recovered in 2009. This is a very strong support which should give us a rebound from current levels. Since 2009, whenever the S&P500 has pulled back, it has always rebounded off this trend line. Should this support be broken, the only support in the way of the downward move will be the 200 day moving average. Lets hope it will not come to that extent.

So history and technicals are telling us differing stories and lets see how it pans out over the next 4 days.

I am sure many of you remember KS Energy as one of my top picks for this year. It has not done very well YTD but on Friday, a firm linked to chairman and CEO Kris Wiluan offered to take KS Energy private by paying S$1.07 for outstanding shares not owned by him. Now this is what I call daylight robbery, but obviously shareholders are going to agree to the deal because they cannot wait to exit this position. The past 2 years have not been good for KS Energy as they struggle with their integration project. Now that integration seems like it is working, he decides to take it private? Haha. Well at least I got another privatisation candidate onto my stock picking resume. If I had this stock, I would never let go of my shares at that price.

Any stock picks for this week? Seems like I should pick a stock soon because this is the best chance to pick up some bargains. But please pardon me, I am just too tired today. Will write more next week.

Have a great week ahead!

Best,

SVI