I will readily admit that we have not gotten the sell signal yet but the indicators are weakening fast. This could easily lead to a sell signal in a few days time. By then, the prices could be much lower and you would probably hang on to the stock and wait for a technical rebound. Do yourself a favor- sell some early- so that you can concentrate better if the market were to weaken. If not, you would have taken some profit which is not a bad thing in this uncertain time.
The charts below will tell the story.
Chart 1: MFlour's daily chart as at July 15, 2011_4.30pm (Source: Quickcharts)
Chart 2: TWS's daily chart as at July 15, 2011_4.30pm (Source: Quickcharts)
9 comments:
hi alex,
what is you thought regarding E&O by chartwise ?
although there are quite some good news about this company, the price seems fragile.
Thanks
Hi Alex,
What's your take on Coastal Contracts?
Kind regards,
Jeremy
Good day Alex,
What is your thought on SBCCORP?
Hi Alex,
What do you think about YTL and YEELEE. Both of the stock is falling.
Thank you very much
I have been buying at an average price of 3.50 since 1.5 years ago by studying the company's finance position. I have just sold all of them in less than a week at an average price of 8.18. I do not know a thing about technical analysis but I could feel that the market was getting too exited for MFLOUR. Recent major shareholder sell down and your technical analysis here seem to agree with my decision to sell.
Hi Chun Mun
I think YTL is likely to move sideway, with downward bias. Likely range for next 1 month is RM1.45-1.60.
As for YEELEE, the stock is trapped within a symmetrical triangle, with support & resistance at RM0.95 & RM1.10, respectively.
The indicators for both stocks have weakened and they are likely to test the downside support in the near term. We will have to wait & see whether these support can hold & the stocks can rebound from there.
Hi solomon
Like many property stocks, SBCCorp is probably rising as a result of investors noticing its underlying assets value. I did a quick check on its annual reports & it seems that SBCCorp has sizable land bank in Mukim of Batu (about 41 acres acquired long ago & revalued in 1993-2010); 10 acres at Signal Hill in Kota Kinabalu (equivalent to Federal Hill in KL & acquired in 2002); 73 acres in Batang Kali (acquired in 2004) and 5 acres in Ulu Yam (acquired in 2004). After its recent rally, SBCCorp (at RM1.10) is still trading at only 0.38 times its book value (of RM2.94).
Is there a possibility of privatization? Since the Sia family holds less than 30% of its stock, this exercise can be costly. To mop up the remaining 70% at say RM1.50, would cost about RM80 million. If one were to value the land in Mukim of Batu at the recent value of RM60 psf, the unrealized capital gain is about RM86 million. The Signal Hill land could have doubled up, which would yield another RM40 million unrealized capital gain. So, privatization makes sense as the stock is undeervalued.
SBCCorp is not alone in this catching up game. Unless it starts to realize the hidden value by developing or disposing the land, the shareholders may not get to enjoy the full value of these assets.
Hi jeremy tan
Prior to the ex date of the bonus issue, Coastal Contracts has already exhibited technical weakness. In fact, many stocks going thru favorable corporate exercise, involving share split & bonus issue, have not fared very well lately. This is a sign of the poor market sentiment. In a bullish market, investors clamor for more shares. In an uncertain market, more shares means more way to lose money.
Fundamentally, I think Coastal is still a sound stock but it will likely to trade lower for the above reason. The support is at RM2.27 (the gap in early April and then the horizontal support at RM2.10-2.15.
Hi tan
E&O is likely to drift lower, as some indicators are turning negative. Its next support is at RM1.38-1.40. If that support failed, it would slide to its uptrend line support at RM1.18-1.20.
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