Chart 1: Timecom's daily chart as at June 21, 2011_10.05am (Source: Quickcharts)
With the above bearish breakdown, Timecom is likely to slide to its long-term uptrend line with support at RM0.70. See Chart 2 below. As at 10.05am this morning, Timecom is trading at RM0.70. Would the stock rebound back from here or would it break through the long-term uptrend line? A breakdown below the long-term uptrend line would be very bearish for this stock.
Chart 2: Timecom's weekly chart as at June 20, 2011 (Source: Quickcharts)
Timecom is at the technical crossroads. It could be a good buying opportunity if the long-term uptrend line support at RM0.70 can sustain. If it failed, Timecom's uptrend would be over & the stock could enter into a sustained downtrend.
Note: Time Engineering is offering to sell its stake in Timecom to its shareholders at RM0.53 each. This could be the main reason for the sell-off in Timecom. While this may have some impact, it does not change the fundamental of Timecom. As such, the selldown in this stock could be a buying opportunity.
11 comments:
it breaks 0.70... this is government-linked company.. wont drop further due to election?
thinking to in by now?
Hi Alex, can you comment on KLCCP? Based on my calculation, the price per sq ft of KLCCP is at approx. RM1,200. It is very much undervalued. But the stock performance is just a disappointment and the co. is paying low dividend. Pls comment. ks
Hi Alex,
Can you comment on MASTEEL and GPACKET?
Hi Alex,
Good day!
Can you comment on Gen SP?
Thank you.
Hi Alex,
Please give your view for Digista. CIMB has give its target price RM0.86 on last month.
Thank you.
Hi Ethan Lee
Digista has run up a lot from its price of 12-13 sen in January this year. Notwithstanding the high target price set by research houses, I feel that this stock needs to consolidate its huge price gain.
The technical picture exhibited some weaknesses, where the latest rally frizzling out despite surpassing the RM0.50 psychological level. The stock's immediate support & resistance is at RM0.48 & RM0.55, respectively.
Hi vincent
My take:
1) MASTEEL is in a medium-term uptrend line, with support at RM1.15-1.18. Overhead horizontal resistance is at RM1.25-1.26. The stock rallied to a high of RM1.60 in early April when it announced its participation in a mono-rail project in Johore Baru.
Its EPS is about 12 sen. At RM1.19, Masteel is trading at a PE of 10 times. That's very near its fair value, unless steel demand & prices pick up.
2) GPACKET is a high risk/high reward stock. The sector is rapidly changing, with new players & new technology. GPacket's top-line is still growing, while the bottom-line is still red. At the rate GPacket's P1 operation could breakeven by the end of this year. If that panned out, GPacket will start to book in profit next year.
Chartwise, GPacket is testing its downtrend line (which started in May 2008) with resistance at RM0.86-0.88. The stock also has an uptrend line (started in Dec 2008) with support at RM0.63-0.65.
I think Masteel could be a good stock for medium-term investment. GPacket is also shaping up quite well, though the competition is extremely fierce & the outcome is pretty much in the air.
Hi Marco
I am not familiar with KLCCP's numbers. From the chart, the stock would be a good BUY at RM3.00-3.10. If it can break above RM3.40-3.50, it may put in a decent rally to RM4.00. The RM3.40-3.50 is the 3rd fan-line and if it can break above that, the stock could be very exciting. Watch out for that.
Alex, Thanks for the advise.
Timecom down to 0.43 in the morning and reason such heavy sell off.
Hi Roger168
I presume it is normal selling for Timecom under the current bearish environment. I do not know of any specific reason for this selldown.
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