LMCement has surpassed its all-time high of RM6.80 (recorded in 1993) this morning. For most part of 2009 & early 2010, LMCement was trading above the resistance, RR, and traded in the range between RM6.00 & RM6.50 [see Chart 1]. Yesterday, LMCement broke above that trading range to close at RM6.55 [see Chart 2]. These breakouts (of the trading range & the all-time high) means that LMCement is likely to continue with its prior uptrend. However, there were two past occasions where LMCement made a high higher than the most recent high before it faltered, reversed & entered into a bear market. This happened in 1996-97 (denoted as 'a' & 'a1') & again in 2007-08 (denoted as 'b' & 'b1'). If LMCement were to drop below the most recent high of RM6.63 recorded in August 2009 (denoted as 'c'), then the probability is high that the stock could have reversed. That's the negative scenario which may or may not pan out. For now, LMCement could be a trading BUY for those with high risk tolerance.
Chart 1: LMCement's monthly chart as at Apr 1, 2010(Source: Tradesignum)
Chart 2: LMCement's daily chart as at Apr 6, 2010(Source: Quickcharts)Note: For FYE31/12/2009, LMCement reported a net profit of RM412 million on a turnover of RM2.483 billion. based on its 2009 EPS of 48.5 sen, LMCement is now trading at a PER of 14 times (based on current price of RM6.80). At this multiple, LMCement's upside is fairly limited.
11 comments:
Daiboci is good buy?
Hi Alex,
Should I keep QL(7084) or let go ? Please advice.Thanks.
Hi Alex, what is yr view on pantech?
other oil n gas already moving.
I take a look at Suncity from yr web and quite impressed with their balance sheet.
This maybe will get re-rated if unlocking via REITs materialise. What is yr odds, Alex, on this stock uprise based on today's close?
Hi Cheer,
I do not like Daiboci. I have posted on this stock (see link below).
Technically, the stock is likely to drift lower & test its 50-day SMA line support at RM3.38-40 over the next few days. That could be a good entry level for a trading BUY, i.e. a bet on the stock rebounding off the SMA line. If you are looking for investment stocks, I think there are better BUYS than Daiboci.
http://nexttrade.blogspot.com/2010/01/daiboci-time-to-take-profit.html
Hi phkoay,
QL may have broken its medium-term uptrend line at RM3.50. It is likely to move sideway for a while. It may even drift lower. This is to be expected after a sharp price run-up from RM1.90 in March 2009 to the recent high of RM3.50. Taking some profit now is a good idea.
morning alex. Gamuda break 2.97 this morning. can enter now?
Hi NK Goh,
Pantech is trapped in a triangle, awaiting breakout. Upside bullish breakout is at RM0.98, while downside bearish breakout is at RM0.90.
For 9-month ended 30/11/2009, Pantech's net profit dropped to RM40 million from RM51 million, while turnover dropped from RM372 million to RM336 million. Annualized EPS for FY2010 is about 14.3 sen. At a price of RM0.935, Pantech's PER is about 6.5 times.
It's an attractive stock but the next upleg will only happen after it has broken to the upside of the triangle at RM0.98.
Hi solomon,
I think you have to hold onto Suncity for 6-12 months to see the full potential. It may hit a high of RM5.00 at the end of the present developing rally.
Hi wong,
Gamuda broke above the strong horizontal resistance at RM2.97 this morning. On that basis, Gamuda is a trading BUY.
After the psychological RM3.00 resistance, its next immediate resistance is the medium-term downtrend line at RM3.10.
Based on the recent news flow (its Selangor water assets buyout proposal), Gamuda's shares may recruit buying support which may propel the share price higher.
Mr Alex,
Lingui and other related timber stocks seem become inactive this few day, is it undergone the adjusting period?
thank for your comment
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