TH Plant- a buy if it breaks above RM2.07

On July 25, I have recommended a trading buy for Rimbunan Sawit after it managed to surpass its recent high of RM1.37 (see Chart 1 below). Since then, Rimbunan Sawit has been inching up slowly. Today, it closed at RM1.54.

Another recently-listed plantation counter that you can look at is TH Plantations Bhd ("THPlant"), which is affiliated to Tabung Haji. THPlant, which has a IPO price of RM1.25, was listed in early May. The stock made a high of RM2.07 on May 8 and today, the share managed to touch that high before retreating to close at RM2.05. I believe that THPlant will soon re-test & surpass this RM2.07 high & then, continue to go higher (see Chart 2 below). Given the current strong play in the plantation sector, I feel that the stock may only pull-back a bit to RM1.98-2.00 level before going again. Then again, it may not pull-back at all. You may choose to buy on a pull-back or on breakout above RM2.07. In any event, it is quite "tradable".


















Chart 1: R Sawit's daily chart as at August 9


















Chart 1: R Sawit's daily chart as at August 9