MEGB is poised to re-test its recent low at RM2.80. If it can recover from this 'Test of the Low', then MEGB would have registered in a double bottom reversal with the prospect of it going higher (or at least not going lower). However, if it failed in the 'Test of the Low', then it has one last chance- the support from the expanding triangle at RM2.60. We will have to wait & see how this stock perform over the next few days.
Chart: MEGB's daily chart as at Oct 28, 2010_4.40pm (Source: Quickcharts) Why is this stock dropping? Could it be due to mundane reasons such as delay in opening of some of its planned campuses? CIMB has recently issued a BUY call on this stock, valuing it at RM4.62 (
here). I have my skepticism for this stock (
here) but I am still puzzled by its poor share performance since its listing.
10 comments:
Hi Alex,
I am puzzling of TAGB. Since it announce the joint venture of development in Australia with GDV of AUS 600 million plus, the share price seems move a bit and down. Based on your analysis, will this TAGB goes beyond 0.50 (ipo price)?
I acknowledged that PE is pretty expensive and very low EPS. Mind to tell if it worth holding or sell now ? my hoding price is 0.455. Thanks
Hi Alex,
How do you see KFC stock ? Looks like it is going up again steadily.
Thanks for your view.
How do you think GENM-CL ...
Hi alex
what do you think of success transformer? fundamentally quite sound but the share price hasnt moved much...
HI Alex,
Why has AnnJoo $$ gone down so much. Any possibility of a rebound ?. Thanks in advance.
Hi Tan
The correction in TAGB is due to its prior rally, not so much due to the announcement of the joint venture development in Australia with GDV of AUS 600 mil.
TAGB is consolidating within a triangle with support at RM0.46 & resistance at RM0.47. A break below RM0.46 could lead to further correction to the RM0.43-0.44 support.
Hi NGU
KFC has risen quite sharply over the past 6-8 months. It may hit a high of RM4.00 soon. The last time KFC rallied like this was in 1993-1994.
However, you must be prepared for some volatility as the stock is overbought & could be due for a correction.
Hi ikah2000
Genm-CL's main terms are:
1) expiry date: 4/2/2011
2) exercise price: RM3.00
3) exercise ratio: 4-to-1
Based on the price of Genm at RM3.45 & Genm-CL at RM0.135, the Genm-Cl's premium is about 2.3% presently. With a remaining tenor of 3 months & gearing of 6.4 times, Genm-CL is deemed attractive.
Hi learner,
I agree with your assessment of Success Transformer. The company made a EPS of 10 sen for 1H2010 ended 30/6/2010. At RM1.19, Success Transformer is trading at a PE of 6 times.
Its financial position is very healthy, with current ratio at 3.1 times & debts to equity of only 0.1 time.
Chartwise, the stock is trading sideway, between RM1.10 & RM1.20.
Hi Stephanie
AnnJoo fell back quite sharply last week. Then again, it had a very run-up the week before. I see good support at RM2.90-3.00.
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