Chart 1: Landmrk's daily chart as at July 29, 2010_9.30am (Source: Quickcharts)
Chart 2: DNP's daily chart as at July 29, 2010_11.00am (Source: Quickcharts)
Thursday, July 29, 2010
Landmrk & DNP broke above their downtrend
The listing of Ivory Properties Group Bhd ('Ivory') on our exchange yesterday has been a real boon for investors with exposure to property stocks. Ivory gained 30 sen to close at RM1.30. The sharp gain for Ivory sparked a rally in many property stocks. Below are two quiet stocks which managed to break above their medium-term downtrend line. These stocks- Landmrk & DNP- could be good trading BUY.
Chart 1: Landmrk's daily chart as at July 29, 2010_9.30am (Source: Quickcharts)
Chart 2: DNP's daily chart as at July 29, 2010_11.00am (Source: Quickcharts)
Chart 1: Landmrk's daily chart as at July 29, 2010_9.30am (Source: Quickcharts)
Chart 2: DNP's daily chart as at July 29, 2010_11.00am (Source: Quickcharts)
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40 comments:
Hi Alex,
What is your comments on Glomac? I find that the dividend yield for this stock is High(7%) but it is still very much laggard...
Hi! Alex,
Is it ok to buy KRETAM now for middle term investment?
Thank You!
Hi Alex,
Any comments on BJCORP? Many think that it has found it's bottom earlier this week.
Thanks.
Hi TRULY MALAYSIAN
Glomac (closed at RM1.34 yesterday) is trading at a PER of 9.6 times or at a Price to Book of 0.7 time. Dividend payout for FY2009 was 7% and for FY2010 was 8.5%. At 8.5%, the dividend yield is about 6.3%.
Chartwise, Glomac was in a downtrend since January this year. A few days ago, it broke above that downtrend line at RM1.35. Its next resistance is at the horizontal line of RM1.50.
Hi Desmond Chong
KRETAM has a very sharp rally after it broke above the strong horizontal line of RM1.35. In fact, it is approaching its 2008 high of RM1.79. Unless there is a spectacular development, I think Kretam is unlikely to break above this level. In fact, I was looking at Tekala & trying to see whether a move for Kretam would coincide with a move for Tekala. Alas, I did not arrive at anything conclusive.
Hi David Ng
I agree. BJCORP may have made a bottom earlier this week. The most interesting news was CIMB decided to exercise the option to call back the BJCORP-JA [see link below]. I noted in my earlier post about Callable Bull Certificates (CBLC) on July 16, that I find CBLC to be unexciting due to the presence of one feature called the Mandatory Call Event (MCE). To wit:
"If the underlying security is rising and consequently the CBLC is also going in favor of the holders of CBLC, the issuer can cut short a winning hand by calling in the CBLC. In view of this feature, CBLCs should not attract high premium like CWs or normal company-issued warrants. A fair premium for CBLCs could be about 3-5%."
Interesting, the first exercise of the MCE was in the case of a CBLC where the underlying security was dropping. That exercise can lead to one drawing a few conclusions. For example, you may exercise the MCE if you want to book in the profit or you may think that the underlying security has dropped sufficient & poised for a rebound. The second conclusion would support the assumption that BJCorp was trading very near the bottom & could be due for some rebound.
http://announcements.bursamalaysia.com/EDMS%5Cedmsweb.nsf/LsvAllByID/6FC890085F0C1BC7482577690032E807?OpenDocument
Hi Alex,
What is your comments on DXN after DXN 1Q net profit doubles to RM10m?
Thank You!
Thanks a lot Alex....
Good day Alex,
What is your take on L&G and KHSB? Can u provide the latest insights on these stocks?
hi alex. how the Proton ?? look like break its short term downtrend line, correct ??
Hi wong
Proton looks poised to test its medium-term downtrend line at RM4.58. However, its strong horizontal resistance is at RM4.60. You should wait for it to break above RM4.60 to be sure of a trading BUY. Good luck.
Hi Miraie
DXN's quarterly net profit has risen steadily from about RM5-6 million to about RM10 million over the past 1 year. It attributed this to greater coat efficiency, which could be true because its quarterly turnover remained stagnant at RM60-70 million. At the present earning level (or full-year EPS of 17 sen) and closing price of 78.5 sen, it is trading at a PER of 4.6 times. Based on this PER multiple, DXN is deemed attractive.
DXN has good support at RM0.75. It resistance is at RM0.88-90 (from what appears like an expanding triangle) and thereafter the horizontal resistance at RM1.00-1.05.
Hi,Alex,
Good morning.Could you please tell me as to why some companies have different par values?What are their purposes in doing so?Thank you in advance.
Hi solomon
My take:
1) L&G broke above its medium-term downtrend line at RM0.46. Its immediate resistance is at RM0.55 & then at RM0.65.
2) KHSB is poised to test its long-term downtrend line at RM0.45. If it can break above that level, it may go to the next resistance at RM0.50 & then at RM0.60.
I think KHSB is worth close tracking.
Hi newbie
The par value of a stock is the result of the owner/management's decision on the following:
1) where should our share price be located on a scale ranging from affordable to excessively high?
2) how to reward the shareholders- by way of cash dividend or free share distribution (via bonus or share split)?
Par value is not an important thing to look at in valuing share. The only time we may be curious about the par value is when a stock announced a dividend in percentage term & we need to know how much will we actually get in ringgit & sen. If the announcement specified the dividend in ringgit & sen, we won't look at its par value.
Hi Alex,
Can I have your opinion on Fajar. It has been very quiet w/o any news, price has been very stagnant and qtr result has yet to be seen.
Thanks.
Hi,Alex,
Thanks for the info.Appreciate them.
Hi Avatar
Fajar is a downtrend. It was earlier trotted as the likely winner of the contract to expand the LCCT based on the fact that it did the earlier LCCT job. The downtrend line resistance is at RM1.08-1.10.
Hi Alex, do you have any idea what is going on with JCY? It had great results last quarter and there hasn't been any bad news since then. Yet the stock seems to be crashing. At at average buying price of RM 1.43, should I average down now, wait or just cut loss? Appreciate your opinion!
Hi AlexP
JCY broke below its strong horizontal support (its recent low) of RM1.45 on July 22. If I draw a parallel line (to the downtrend line), the support from the parallel line is at RM1.15.
JCY is involved in the HDD business. You may notice that Notion- another HDD player- has been sliding lately. If Notion were to break below the support of the "wedge" formation at RM2.55, we may be seeing a bearish reversal. That means that the stock could be trending lower from that point onwards. Something must be not going well for HDD players.
Hi,Alex,
Thanks for the comment
Hi Alex,
How do you find Subur Tiasa stock in view of the seemingly improvement in the timber sector of late ?
Thank you.
Alex,
GUH up quite a bit on (relatively) strong volume.They canceled 10% of shares from Treasury shares and got mandate to buy another 10%.Lots of cash and low low PE.
Any views on this one?Thnks
Hi NGU
Subur Tiasa could be a good stock in view of the improvement in the prices of timber & timber products. Based on its 9-moth EPS of 12.7 sen, Subur's current PER is about 12.6 times. At this PER, Subur is fully valued unless the prices of timber & timber product rally.
Chartwise, it has good support at RM2.00, while its reistance is at RM2.50-2.60.
Hi Richard
Based on what you have written about GUH- the 10% treasury share cancellation and the mandate to buy another 10%- I believe the stock should continue in its present uptrend. The uptrend line support is at RM1.18. Strong horizontal resistance is at RM1.60-65 and then at RM1.85-90.
Hi Alex,
Is the notion FA good?
hi Alex,
Can you help me to understand when should petra shareholder need to decide to take up the right issue?
Thanks ya.
Hi Alex, is Ivory worth to be invested? Thanks
Dear Alex,
May I have your comments on Manulife? Thanks!
Good day Alex,
A sustainable rally, looks like with the theme rotational play or too quick to call?
Is there any upside bias for LIONDIV and Kinsteel?
Hi Alex,
Any comments on E&O and its shares buyback?
Hi cheer
Like JCY, Notion has suffered because of the sharp decline in demand for HDD. This is due to the emergence of IPADs which has eclipsed netbooks, causing the sale of netbooks to drop sharply. Unlike netbooks, IPAD uses flash memory instead of HDD.
Hi Bond
Petra has not fixed the entitlement date for the proposed rights issue. It should be soon as all the approvals have been obtained.
Hi Sumin
Sorry, I have not looked into Ivory. When I'm free, I will take a look at this company.
Hi steve
Manulife is a good medium-size insurer offering a range of life insurance products, wealth management products and investment management services. It recorded EPS of 29 & 23 sen for FY2010 & FY2009 (or averaging 26 sen). Its dividend payout for past 3 years (from FY2008 to FY2010) are 18, 13 & 17 sen (or averaging 16 sen). As at 31/3/2010, its NTA per share is about RM2.50. Based on its closing price of RM2.76 yesterday, Manulife is trading at a trailing PE of about 10.6 times or Price to Book of 1.1 times. Its dividend yield is 5.8%. From this, Manulife is deemed quite attractive.
Chartwise, Manulife is trapped within a big triangle since 1993 with upside resistance at RM3.30 & downside support at RM2.00. However, its good medium-term entry level is at RM2.50- the strong horizontal support.
HI solomon
It's pretty much rotational play or trading for now. One has to catch the 2nd & 3rd liners which have broken out; get into the play early; & exiting on timely basis.
I haven't seen anything developing in LIONDIV. As for Kinsteel, the stock may test the RM1.08-1.10 level, if it can break above the RM1.00 mark. I doubt Kinstel can do it as the steel sector is facing a very tough time.
Hi jeremy tan
E&O is a cheap property stock. If one was concerned about its gearing in the past, that concern has ebbed as its portfolio of development lands has appreciated tremendously.
The Edge has a good write-up on this stock this week, with high value being bandied out (as high as RM3.60!). In addition, the story raised the prospect of a privatization play which I doubt. The major shareholder, Tham owned only 16% of E&O. Can he raise the funds to complete the buy-out which can be as high as RM900 million?
I am inclined to think that the stock's medium-term target is about RM1.50-1.60 & long-term target is about RM2.20-2.30.
Hi Sumin
Ivory recorded net profit of RM27 million for FY2007 & FY2008 & RM17 million for FY2009. Assuming it can record a net profit of RM27 million again (not a difficult task in the current bullish property market), its EPS would be about 14.5 sen (based on the share capital of 186 million units). At the present price of RM1.31, it would be trading at a PE of 9 times. Its Price to Book is about 1.6 times (based on NTA of 83 sen). At these mulitples, I think Ivory is trading very near its fair value. Assuming a PER of 10 times for this medium-size developer, Ivory could potentially go as high as RM1.45.
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