Insas rallied. Can BJCorp & BJLand join in?

Insas has announced today that the Securities Commission has approved the admission of M&A Securities Sdn Bhd (“M&A”), its wholly-owned subsidiary, to the Approved List of Principal Advisers which will enable M&A to act as a principal adviser for initial public offerings, reverse take-overs, restructurings and all type of other corporate proposals except for those involving private debt securities, Islamic securities and structured products. Together with the existing stockbroking services, M&A is now poised to play a more active role in the Capital Market.

The corporate finance activities will further provide M&A with a new income stream which is in tandem with its plan to diversify its income base and signify the beginning of M&A’s transformation into a full-fledged financial services outfit of Insas.

Following this announcement, the share price of Insas broke to the upside of its triangle formation and rallied sharply. I have appended a composite chart showing the price movement of Insas & another two stocks controlled by Vincent Tan, i.e. BJCorp & BJLand which have achieved similar bullish breakouts, albeit without increased volume. Unlike Insas, there were also no significant announcement for the latter two stocks and the bullish breakout for these stocks could be coincidental. However, these three stocks have moved in tandem in the past & it is possible that they will do the same again. If the volume picked up for BJCorp & BJLand, they could turn out to good candidates for trading BUY.


Chart 1: Insas, BJCorp & BJLand's daily chart as at Sept 24, 2009 (Source: Quickcharts)