On August 21, we have learned that Syed Yusof and parties close to him has sold off their 17% stake in Landmarks at RM2 apiece to Genting Bhd (see my post here). In that post, I’ve made a few assumptions that may not be correct and advised that the better course of action is to take profit on your investment in Landmark. I wonder whether on fuller consideration & better information, I would have recommended a different course of action because the premise of my earlier recommendation to buy Landmark was based on a fight for control. With Genting taking over from Syed Yusof , the fight for control is likely to be over for Genting is unlikely to get into a bidding war in Malaysia. What is left unresolved is why Genting bought into Landmark and that’s a moot point as far as the fight for control of Landmark is concerned.
Technical Outlook
As noted, the share price of Landmark has retraced back quite sharply since August 21 (see the chart below). The followings are noted:
1. Landmark’s medium-term uptrend line, AA may provide support at RM1.40, which also coincides with the strong horizontal support of RM1.40.
2. Landmark’s short-term downtrend line, BB may provide resistance at RM1.58/1.60 in case of rebound.
3. The 10- & 20-day MA may also act as resistance at RM1.65 & RM1.69, respectively.
4. From yesterday’s close of RM1.56, we see the next horizontal support is at RM1.52 while the next horizontal resistance is at RM1.67.
For those who are still long on Landmark & looking to sell, a good level to sell may be given by the short-term downtrend line, BB at RM1.58/1.60 or the 10- & 20-day MA may also act as resistance at RM1.65 & RM1.69, respectively.
For those who are looking for a trading opportunity, you will have to be patient & wait for the price to come closer to the medium-term uptrend line, AA at RM1.40.
Chart: Landmark's daily chart as at Sep 6
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