Chart 1: All Carbon Steel Products Composite Price & Index charts (June 2006 to Sept 2010) from MEPS (INTERNATIONAL) LTD
The rise in steel prices reflect the increased demand & higher cost of iron ore. Over the past 2 weeks, we can see the share price of our local steel producers is slowly moving up again. My preferred stocks for this sector are AnnJoo & KinSteel. Both stocks have broken above their downtrend line.
Chart 2: AnnJoo's weekly chart as at Oct 22, 2010_11.00am (Source: Quickcharts)
Chart 3: Kinsteel's weekly chart as at Oct 22, 2010_11.00am (Source: Quickcharts)
Based on the improved fundamental & technical breakout, steel stocks could be good trading BUY.
15 comments:
hi bro. may i know what is target price for Annjoo and Kinstel ?? thx.
Hi Alex,
How bout CSCSTEL? Thanks.
Hi Alex ,
How do you think about RGB Company formerly Known as Dreamgate and Genting HK US$ that was listed on Singapore Main Board .
Thanks !
Hi Wong,
Kinsteel's immediate support is at RM0.95 & immediate resistance at RM1.00. Below RM1.00, it has resistance at RM1.10 & RM1.15.
AnnJoo's immediate support is at RM3.00 & immediate resistance at RM3.20-3.23. Below RM3.20-3.23, it has resistance at RM3.50 & RM3.60.
Hi Tan,
CSCSteel has formed a rising or bearish wedge, with resistance & support at RM1.85 & RM1.75. A break above RM1.85 would lead to the continuation of its prior uptrend, while a break below RM1.75 would lead to a reversal.
Hi Chee Nian
RGB (formerly known as Dreamgate) continued to incur huge losses. For 1H2010, its net loss amounted to RM28 mil on turnover of RM58 mil as compared to a net loss of RM20 mil on turnover of RM70 mil in 1H2009. Its financial position is very precarious, with current ratio at 0.5 time & debts to equity of 1.2 times as at 30/6/2010.
RGB Company is in a long-term downtrend. It broke its horizontal support at RM0.08 in June. It's trading at new low with no sign of a rebound. Under such circumstances, one should avoid this stock.
Hi Alex, what is your opinion for DHBRCOM? For my research, it still undervalue and have a very good cashflow. thank you
Hi Alex, what is your view on muhibah? Is it still got growing potential?
Hi Alex,
What u think about Turbo shares?
Hi Harry
I agree with your take on DHBHicom. However, this stock has negative issue relating to corporate governance. This problem afflicts all companies under Syed Mokhtar stable.
Chartwise, DRBHicom is still in a downtrend line with resistance at RM1.48-1.50. If it can break above that resistance, I think the stock could commence on its upleg.
Hi Pyro
I like the chart of Muhibah. Its 10-week SMA line has crossed above its 20 & 40-week SMA line. These are equivalent to a mini-golden cross and a golden cross.
If you have not entered into this stock, you can get in on pullback to the psychological RM1.00 level or the 40-week SMA line at RM0.96-0.97.
Please double check on the financial statements by visiting Bursa website.
Hi Raymond Y
Turbo is a very quiet newly-listed company. It has a strong horizontal resistance at RM0.68 and support at RM0.59-0.60.
It recorded a net profit of RM5 million for QE30/6/2010. Assuming the same results for the next few quarters, its annualized EPS would be about 18.5 sen. At RM0.625, Tirbo's PE is only 3.4 times. That's very attractive! The big question is whether it can maintain the same level of profit. We have seen many newly-listed O&G stocks which have problem sustaining their operations after their listing.
Hi Alex , what do u think about scomien company?? From my research the company is doing well on monorail business.
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