The only significant announcement made by Keuro is that it had disposed of 134,925,600 ordinary shares, representing 5.21% of the shares capital of Talam Corporation Berhad between 9 March 2010 and 12 May 2010.
Chart: Keuro's week chart as at May 26, 2010 (Source: Tradesignum)
Keuro had received a notification dated 24 May 2010 from Tan Sri Dato’ (Dr) Ir. Chan Ah Chye @ Chan Chong Yoon, its President/Chief Executive – Executive Director that he intends to deal in the securities of the Company (go here). Chan Ah Chye has direct & indirect interest in 143.6 million shares of Keuro. I think it is very likely that he is planning to sell into the current sharp rally.
While the upside breakout above the downtrend line should be viewed as a bullish development, this breakout came after a sharp rise of more than 50% over the past 4 days. Any trade based on this breakout could be a risky proposition. A failure to stay above the breakout level could lead to a sharp correction. Avoid Keuro despite the bullish breakout. If you have position in Keuro, sell if it failed to stay above RM0.78.
7 comments:
Hi Alex,
Thanks for your insights on Keuro. I was awed with its recent sharp rise.
Could you also give some comments on KKB. The price had been in downward trend after the BI / SS. However, today there have been some upward momentum on the price.
Cheers.
Hi Avatar,
KKB tested its 100-day SMA line at RM1.55 yesterday. This SMA line seems to be holding up KKB for now. It could be a good entry level. However, if KKB were to break through this support, it may test its uptrend line at RM1.30.
I think KKB may enjoy a good rebound after its sharp drop over the past 8 days.
Hi Alex,
You're right. So far KKB rebounded well today.
Thanks.
Dear Alex,
What's your advise on Gold investment?. I've check Maybank and public bank rates (Gold Saving Passbook) but their rates are a bit high compared to OSK etc. What's your comments on the best investment tool for Gold and what are the risks ?.
Thanks.
Hi Stephanie,
I didn't know OSK offer investment in Gold. Anyway, the best approach is to buy gold coins. If you invest a lot in this asset, you may have some problem safekeeping the coins. The safest approach is to place it in the safe deposit box of the bank where you bought the coins.
Some may invest via ETFs, but if the governments were to ban the holding of gold, then these ETFs would surrender the gold at a predetermined price to the governments. This may sound extreme or crazy but the US government had done it before. This may happen again if fiat currencies were to totally lose their value due to money printing. If it happened again, the gold coin that you've hoarded would continue to appreciate.
Gold has appreciated tremendously over the past few months due to concern about PIIGS or the Euro. The same trend was seen during the US financial crisis. However, when the crisis was brought under control, gold prices eased back. So, even if you want to diversify into gold, you should do so gradually. The Euro/PIIGS problem is slowly being contained & the price of gold may correct downward. However, the long-term picture for gold is positive due to high debts in many countries (which undermined all fiat currencies) & the preference for inflationary environment over deflationary environment in order to make life easier for heavily indebted consumers & to avoid "lost decade" situation like Japan.
Good luck!
Thanks Alex.
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