Chart 1: FBM-KLCI's daily chart as at Feb 22, 2010 (Source: Quickcharts)
While most stocks have recouped some of its losses, some stocks are racing to new high. In this very small field, we can find names such as Daiboci & Tomypak. Daiboci proves that a stock can do wonderful things when it has the wind of momentum to its back. I remained skeptical of its success story. Go to Chart 2 for the daily chart for Daiboci.
Chart 2: Daiboci's daily chart as at Feb 22, 2010 (Source: Quickcharts)
Other stocks which look very promising, include the rubber glove manufacturers (such as Supermx, Kossan, Adventa & Latexx); Unisem; and, TChong. These stocks have broken above their respective short-term downtrend line. For the daily charts of Supermx, Unisem & TChong, see below.
Chart 3: Supermx's daily chart as at Feb 22, 2010 (Source: Quickcharts)
Chart 4: Unisem's daily chart as at Feb 22, 2010 (Source: Quickcharts)
Chart 5: TChong's daily chart as at Feb 22, 2010 (Source: Quickcharts)
Finally, some stocks are resting on strong support level, with no sign of the next price direction- Up or Down? Among them are Freight.
Chart 6: Freight's daily chart as at Feb 22, 2010 (Source: Quickcharts)
In this environment, what shall we do? If you think that the uptrend of the market will continue, then you should buy into the market as soon as possible. Your risk tolerance would determine whether you should buy stocks which show more bullish outlook (such as those which had already broken above their short-term downtrend line) or stocks which haven't moved up yet but are resting at strong support level. On the other hand, if you think that the market is enjoying a short rebound with uncertainty ahead, then you should remain at the sideline. Times like these are tough on both investors & traders because they have to decide on a course of action where the outcome is anybody's guess.
Pls give some valuable comments on the HSL , Fajar and Maxis
ReplyDeleteDear Alex,
ReplyDeleteNeed your advise on AE Multi chart please? Closing yesterday Rm1.01, izit good entry now? Thanks for your advise...
Kit
Hi Cheer,
ReplyDeleteMy thoughts are:
1) HSL is still in an uptrend, as it's well-supoprted by the 50 or 100-day SMA line. Immediate target is RM1.35-36.
2) Fajar is trapped in a symmetrical triangle, with support at RM1.05 & resistance at RM1.20.
3) Maxis is range-bound between RM5.32 & RM5.40.
Hi Kit,
ReplyDeleteAEM is a marginally loss-making company. For FY2009, it incurred a net loss of RM1.8 million on a turnover of RM60 million.
Who knows what drove its recent rally? It announced that it is negotiating to acquire a 18%-stake in BL Holdings Ltd, a British Virgin Islands company, for some S$500,000 (RM1.21 million). BL Holdings is the sole owner of Ben’s Entertainment City (HK) Ltd, which owns a cruise business. As you may know, cruise business is no easy meat. Just look at the financial performance of Genting HK (or, formerly, Starcruises) and you will get a rough idea that AEM will be better served by avoiding something like this.
Technically speaking, AEM's next support is at RM0.97-1.00 and thereafter at RM0.75 (as the share price may attempt to close the gap made on Jan 14).
AEM, which is involved in the manufacture & sale of printed circuit boards, has not seen a strong upturn in its business. While its liquidity position seems okay, its leverage is high (with borrowings to shareholders' funds of 1.2 times). Its proposed new venture in the cruise business looks like a harebrained scheme that should be avoided. It's capital intensive & it is the last thing a highly-leveraged company needs.
Hi Alex,
ReplyDeleteCan you comment about genting? if for you genting or genm you will go in now?
Hi Teh,
ReplyDeleteGenting & GenM should have good support at RM6.00 & RM2.50, respectively. The stocks are presently about 6% away from these strong supports. If you are worried that you might miss the attractive prices now, then you can nibble slowly at the 10 sen or 2% higher than the indicated support level.
Hi Alex,
ReplyDeleteHappy CNY, can you comment about BJTOTO, vested this share since Sept, last quarter result did't annouce any dividen, is this stock still can keep for long term for dividen payout? thanks in advance.
Hi honey@e*sin,
ReplyDeleteThanks for the new year greeting. I wish the same for you & your family.
BJToto is a bit of a disappointment as it had hardly appreciated for the past few years. It is now trading near prices recorded in June 2006. However, we cannot forget its generous dividend payout- the most recent being the cash dividend of about 30 sen & the share dividend of 1-for-14 (worth RM350) in July 2009.
Chartwise, it has good support at RM4.20. It is trading very near to this strong support level. In Note B12 of its Notes to its Accounts for QE31/10/2009, BJToto stated that it has made cash dividend payout equivalent to 117.6% of its Net Profit attributable to its Shareholders. I think we can expect BJToto to continue its dividend payout track record. Finally, you are right that the company did not propose any dividend payment for QE31/10/2009. It may do so at the next results announcement (in mid-March).
Link to the Notes to the Accounts for QE31/10/2009:
http://announcements.bursamalaysia.com/EDMS/edmswebh.nsf/8b25383a269fcce548256d79001af770/482576120041bdaa48257688003406f0/$FILE/BTotoQ2.pdf
Hi Alex,
ReplyDeleteYes, let's see for the next quarter annoucement. Hope bjtoto can bring us some good news for the dividen payout ;)
Anyway, thanks for your prompt reply, appreciated it.