However, I believe that Genting SP will soon satisfy the demand of the two diverse group of players. For those who missed selling at S$2.18, they may see the stock at or near that price again. For those who missed buying at S$1.86, they may also see the stock at or near that price again. Of course, these 2 scenarios would not happen at the same time. How could it be possible, you may ask. It's possible because I believe this stock has made a temporary top & for the next few months, it's likely to trade sideway- revisiting its recent high as well as its recent low. For those who can muster their emotion, this stock could be an excellent trading stock. You may make good money by trading the swing from the low to the high.
Chart: Genting SP's weekly chart as at Sept 30, 2010 (Source: SGX)
8 comments:
Last week, a different group of players beat themselves up for selling at the high of S$2.18 on September 20.
Do you mean NOT selling?
By the way, for me you are the best retail Malaysia stock market blogger.
Let me explain.
1st, you cover both fundamental and technical
2, you reply to so many questions and comments.
3, you are very objective in your comment and polite too. Many fomous blogger always talk bad about malaysia stock market or economy, etc. They are good, but they use it mainly to attack. I notice recently you ask to avoid Gamuda where most analysts keep raising target price. I fully agreed with you. We may be wrong, but you are bold to make a stand base on fundanmental.
4, you cover mainly specific stock rather than general economy. This is more relevant to us as retail.
5, your expertise and knowledge are good. I think you probably have software or database to guide you, where maybe few clicks you may be able to find out the counter info.
6,7,8,9,10 etc etc.
But sad thing is I dont always have access to internet. When i read your article, it is too late. I saw your reply to a visitor who complained he can't make money from your blog because the price already fly. I agreed to your reply. You explained well.
But I do have a request. Can you post more SLOW STOCK? hahaha... something similar to Advanta that you just posted......
Based on the improved financial performance & good technical outlook, I would rate Adventa a hold. To get into this stock at RM2.00-2.20 may not be a bad idea, though it's a bit early. I would prefer to see another quarter of increased profit before calling a BUY on this stock but then again the price could have moved higher from here.
With the article like this, even I visit your blog few days after it was posted, it is still beneficial to me. Example some may prefer to wait and enter at RM2.00 - RM2.20.
Many thanks.
The high volatility of Gen SP does provide opportunity for punters to exploit Mr. Market. This was especially so just a couple of months ago when Gen SP was hovering around S$1.20. The game was even much more exciting if one dared to punt on its call warrants listed in Bursa, when say Gen-C3 was selling at about 4 sen for quite some time, which it was settled off on recent expiry at about 60(?) sen for more than 10 times profit when Gen SP rose by about 85%! At that time, few wanted to even to hear about punting call warrants, when the risk they perceived was very high. The risk to me at that time for Gen SP call warrants was low because of the low price of Gen SP and some of Gen Sp call warrants were selling at discounts, not withstanding there was considerable time values. Since the published of the quarterly report a couple of months ago which showed Genting SP made hundreds of million in profit, mostly due to pure luck of low payout, Gen SP shot up sharply to above S$2.00. It is strange at this price, many people think that Gen SP is cheap and Gen SP call warrants such as C8 is selling at a premium of 23% and a high implied volatility of 81%. A double whammy in increase in risk in the price of underlying share and implied volatility. I think the risk of punting Gen SP and its call warrants may not justify its expected return now. Again you never know. Some analysts even project a target price of S$10 for Gen SP, crazy like the internet bubble era!
Hi Polite Market,
Thank you for your very kind words. I too like to post on cheaper stocks that have not moved up. However, it is extremely difficult to find such stocks after a long bull run. It's like looking for the proverbial 'needle in the haystack'. If any cheap stocks struck you as a good BUY, please drop us a note.
Hi KC,
I share your thoughts on Genting SP. It's worth noting that the company has benefited from exceptionally 'good luck' factor in the last quarter. You have made this point very clearly. I have also conveyed the same point to my clients and almost all of them regarded the comment as frivolous. Hopefully, this 'good luck' factor will continue...
Hi Alex,
Does today's last minute drop in Digi should be a caution that the market is pose to a pause or irrelevant?
Hi Solomon,
The Digi trades at RM21.00 were carried out during the 10-minute window just before the close. Total board lots sold were 391. It's price manipulation for reasons unknown.
Hi Alex, could u comment about Scomi and Petra shares?
Hi Raymond Y
Scomi and Petra have been the slow boats in O&G universe. This is due to their recent poor financial results. For 1H2010 ended 30/6/2010, Scomi recorded a net profit of RM17.2 mil on turnover of RM889 mil. The annualized EPS for FY2010 is about 2.6 sen. At RM0.42, Scomi's PE is about 16 times.
Petra recorded a net loss of RM29.4 mil on turnover of RM108 mil for 1H2010 ended 30/6/2010. The loss was attributable to fair value adjustment of RM8.7 mil, higher maintenance cost for old vessels and higher lease rental & mobilization cost for new vessels delivered.
Scomi's immediate support is at RM0.40 while its resistance levels are at RM0.44 & RM0.465. Petra's immediate support is at RM0.70-0.70 while the resistance is at RM1.00.
I would rate Scomi as a long-term buy. Petra looks cheap but it has many problems, including shareholders tussle. For more on Petra's problems, go here .
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