Commerz & PBBank- dropping to their long-term uptrend line

Due to the sharp selldown of Maybank shares, PBBank & Commerz share prices were also badly knocked down. Commerz dropped from an opening price of RM6.85 on March 2nd to close at RM6.20 yesterday. Based on its Net Assets of RM4.84 as at 31/12/2008, Commerz is now trading at a Price to Book of 1.3 times. Based on Kenanga's forecast 2009 EPS of 67.8 sen for Commerz (as per its reports dated February 24th), the stock is now trading at a PE of 10.4 times. From Chart 1 below, we can see that Commerz's long-term uptrend line support is at RM5.80.


Chart 1: Commerz's monthly chart as at March 12, 2009 (Source: Quickcharts)

PBBank dropped from an opening price of RM8.80 on March 2nd to close at RM7.05 yesterday. Based on its Net Assets of RM2.84 as at 31/12/2008, PBBank is now trading at a Price to Book of 2.5 times. Based on Kenanga's forecast 2009 EPS of 75.5 sen for PBBank (as per its reports dated January 21st), the stock is now trading at a PE of 9.9 times. From Chart 2 below, we can see that PBBank's long-term uptrend line (SS) support is at RM6.50. This stock has earlier broken through its accelerated uptrend line (S1S1) support at RM8.00.


Chart 1: PBBank's monthly chart as at March 12, 2009 (Source: Quickcharts)

I think that both stocks are good long-term BUY at their respective long-term uptrend line support.