Thursday, January 19, 2012

Maybulk & Haio- Strong rally! Time to take profit?

Presently, two stocks have rallied despite uninspiring financial performance. The first stock is Maybulk, the shipping company that is part of the Robert Kuok group. Maybulk tested its long-term downtrend line at RM2.25. Unless there is breakout above the downtrend line, I feel that you should sell into the present rally.


Chart 1: Maybulk's weekly chart as at Jan 19, 2012_11.00am (Source: Quickcharts)

The second stock which has rallied very well is Haio. The chart looks very nice as the stock has broken above the 40-week SMA line at RM2.01. At the present price of RM2.30, Haio is trading at a PE of 15 times. At that multiple, Haio is fully valued. Despite the bullish technical outlook, I feel investors should take profit on their investment in Haio, especially when it approaches the resistance at RM2.40.


Chart 2: Haio's weekly chart as at Jan 19, 2012_11.00am (Source: Quickcharts)

For my recent posts on Maybulk & Haio, go here & here.

14 comments:

luckystock2 said...

Hi Alex ,
What do you think about TWSplant ? It has rallied recently but seem like weak during these few days.
Tx!

Stanley said...

Hi Alex, do u think cypark is a stock for long term play? Current prices are quite attractive.

Jimmy Yeoh said...

Hi Alex,

Can you comment on MPI after upgrade on positive outlook for semicon?

Thanks.

Anonymous said...

Dear Alex,

Thanks for sharing so much information. I just want to ask. I'm not an expert on this matter but do you think AT 0072 would make a rally based on the 2 weeks price resistance of 0.14 to 0.15?

Thanks again.

desmond said...

Hi Alex,
Do you have any comment on UOADEV?

Thanks

Alex Lu said...

Hi Juan Hardiez

I saw the chart of AT. It is interesting & potentially bullish. I did not post on it because its financial performance is quite unexciting. It is primarily an integrated designer and manufacturer of industrial automation systems and machinery with supporting activities including Fabrication of Parts and Equipment, and provision of Industrial Automation Support Products and Services.

Chartwise, it should have good support at RM0.115 & RM0.085.

Good luck.

Alex Lu said...

Hi Jimmy Yeoh

I call a long-term buy on MPI earlier. The stock has swung up sharply lately. It could be the beginning of its recovery. However, you should note that the financial performance of the company is poor.

Alex Lu said...

Hi Stanley

cypark is still in a downtrend. I have called a trading BUY earlier but the breakout faltered (see link below). It could be a long-term investment stock but do accumulate slowly.

http://nexttrade.blogspot.com/2011/07/cypark-breaking-above-its-downtrend.html

Alex Lu said...

Hi luckystock2

TWSplant seems to have formed an expanding triangle. It tested the upside resistance at RM4.75 recently. I do not expect it to drop to the downside support (of that triangle) at RM2.50. No way! The immediate support would be the horizontal line at RM4.00. Your strategy is to buy at RM4.00 & try to sell at RM4.75-5.00.

Alex Lu said...

Hi desmond

I think UOADEV is at the beginning of an uptrend. Good entry is between RM1.40-1.50.

Anonymous said...

Thanks very much Alex for the advice and information. I'm gonna further study the trend before making any move.

Thanks again.

bennu chong said...

bro seems like its tech stock trend now... jcy,unisem and mpi all firing up... any other tech stock to watch?

SureWin said...

Hi Alex,

Gong Xi Fatt Cai

Would you mind to do a TA on INGENS? Gotta feeling it is brewing....

Thanks.

Alex Lu said...

Hi SureWin

INGENS is a tricky stock. It has strong resistance at RM0.08-0.10. Punters are hoping that it will put in a repeat performance by charging up to RM0.45 like in 2011, my guess is that it will disappoint many.