Monday, April 16, 2012

KEURO may continue its uptrend

KEURO tested its intermediate uptrend line, SS at RM1.22 last week. On Friday, it rebounded & broke above its medium-term downtrend line, RR at RM1.25-1.26. This could sign the continuation of its prior uptrend. Based on this, KEURO could be a trading BUY. Due to poor market sentiment, you should buy on pullback towards the breakout level of RM1.25.

 Chart: KEURO's daily chart as at April 16, 2012_9.05am (Source: Quickcharts)

The latest issue of the Edge newsletter has a story on KEURO relating to the likely disposal of a substantial stake in the company by its major shareholder, Chan Ah Chye. It also touched on the possibility of IJM raising its stake in KEURO. These two stories are not new development. They were in the news a few months back. Star had published a story of Chan's exit from KEURO in February (here) while the Edge has also published a story about IJM's possible raising of its stake in KEURO in January (here).


Kok-Siang said...

just wonder where I could get the information about the total percentage of KLCI that hold by foreigner? Bursa should publish this information to public, at least by monthly for better transparency.

Investor said...

Hi Alex do you mind commenting on YSPSAH?

Anyway your blog is extremely helpful in a no nonsense manner. LOVE IT!

Anonymous said...

Hi Alex

Can you comment on Tambun Indah?

It has proposed right share + free warrant on basis 2 right (cost at 50sen) + 1 free warrant (conversion price at 60sen) for every 5 exiting share.

Tambun also proposed dividend of 3.8sen TE, in which both exiting share + right share are entitle to these dividend.

Ai Ling said...

Hi Alex,
Pls comment on KNM & WTK. WTK price is climbing up recently but not sure whether it is the good time to release or I should wait.Thanks!

konchy said...

Hi Alex, how do I follow your blog? Is there tool/gadget to get an e-mail as soon as you have a new post? Thanks

Alex Lu said...

Hi Kok-Siang

Recently I read somewhere - I've forgotten where - that foreign shareholding has increased in Bursa. It could be the recent issue of the Edge. If I am not mistaken, the increase was from 21% to 26% in the past 1 year.

I am not sure whether Bursa publishes this information but you can write to them to inquire at

Alex Lu said...

Hi Investor

I am glad you find my blog useful.

YSPSAH is a profitable company. It reported a net profit of RM15.4 mil on revenue of RM156 mil for FYE31/12/2011. Its EPS for FY2011 is 13.5 sen. At RM1.04, YSPAH is trading at a PE of 7.7 times- which is fair for a smallcap.

The technical outlook for this stock is confusing. It is best to say that it is not in any particular trend. It traded between RM0.95 & RM1.15 for the past two years. From the look of it, it will probably continue in this fashion in the near term.

Alex Lu said...

Hi hng

Tambun is a relatively cheap property stock, trading at a PE of 6 times or PB of 0.9 times. Since its listing in Jan 2011, it has been trading in a range of RM0.60 & RM0.70.

I am not familiar with Tambun's background. Its value will depend on its landbank & the type of properties that it develops. You can see that Huayang is still doing fairly well as it specializes in medium-cost properties which has steady demand.

Alex Lu said...

Hi Ai Ling

KNM is still trying to find the bottom. Its support is its recent low of RM0.83 while its resistance is at RM1.00 & RM1.15. If it can swing back above RM0.95 (preferably RM1.00), the stock could stage a decent rally. It may even test the next resistance at RM1.50. That may be a good level to sell.

WTK is riding the wave of upgrading for Sarwak timber stocks with oil palm plantation exposure. Wait a minute, WTK has no income from oil palm sector. Why is it going up? It is trying to break above the horizontal resistance at RM1.55. If it succeed in doing so, it may test its next resistance at RM1.65 & then RM1.75.

Alex Lu said...

Hi konchy

I will look into this.

Ai Ling said...

Thanks a lot for your sharing, Alex.
BTW, what do you think about the unconditional mandatory take-over offer on Esso at the price of 3.59? We are holding some of Esso now which purchased at $4++, do you think that we should cut the loss by accepting the offer or we should reject the offer? What will happen if we rejecting the offer? Pls share your thought here!
Thanks again!