Tuesday, May 08, 2012

PRESBHD testing its horizontal resistance at RM1.05

Prestaring Bhd ('PRESBHD') is one of OSK's top five Smallcap picks. It was featured in the Star's Analyst Report a few days ago (here). OSK valued this stock at RM1.48 based on a PE of 8 times.

From the chart below, we can see that PRESBHD has been pressing against its horizontal resistance at RM1.05 for the past few days. If it can break above this resistance, the stock may go to a technical target of RM1.30 (arrived at by adding the distance between the recent reaction low & the breakout level [of RM0.25] to the breakout level [of RM1.05]). Based on this, PRESBHD could be a stock worth close tracking.


Chart: PRESBHD's daily chart as at May 8, 2012_3.15pm (Source: Quickcharts)

17 comments:

kelvin888 said...

Dear Alex,
How about Formis Resources Bhd?
It is suspended pending the cooperate announcement.
What is the target price for this counter if it can move up prior the news?
I have been held the stock for long time at the much higher price, so sad.
Thank you.
Regards,
Kelvin

billyboy said...

Hi Alex,

Any view on PIE 7095?

It has been up for around 10% since the last you mentioned about it few weeks/months back.

Thanks....

Stanley said...

Hi Alex,

Any comment on YTL Power/MISC, do u think it is a good stock to hold for long term ?

Jimmy Yeoh said...

Hi Alex,

Can Tongher poised for next upleg after break the 2.50 resistance?

Thanks.

Alex Lu said...

Hi kelvin888

Formis Resources Bhd ('FRB') proposed a reverse takeover of MICROLINK SOLUTIONS ('MICROLN') by injecting its subsidiaries into that company in exchange for shares.

Since the shareholders of FRB are serious businessmen, there must be something good in MICROLN in order for them to do a reverse takeover. Similarly, there must be something good in the companies to be acquired for the shareholders of MICROLN to accept the deal.

MICROLN seems to have bottomed between RM0.10 & RM0.24 for the past 3 years. FRB On the other hand, FRB is in an irregular downward channel, with support at RM0.60 & resistance at RM0.95. In addition, it has good support at the horizontal line at RM0.80 & strong resistance at the horizontal line at RM0.90.

An upside breakout above RM0.95 could signal the next upleg for FRB.

Alex Lu said...

Hi billyboy

I've almost forgotten about PIE. I posted on it in November when it was at RM3.65 (the link below).

The stock is now trapped in an expanding triangle, with upside resistance at RM5.00 & downside support at RM4.70. If it can break to the upside, it may revisit its high of RM5.90-6.00. A breakdown below RM4.70 could mean a reversal of its current uptrend.

I hope you bought some when I first posted on it. Good luck!

http://nexttrade.blogspot.com/2011/11/pie-still-in-long-term-uptrend.html

Alex Lu said...

Hi Stanley

YTLPower & MISC look bad now. The only consolation is that from this low price level, a phoenix will rise one day.

MISC is likely to test its strong horizontal support at RM4.00 while YTLPower may test its strong at RM1.60. Since they are both not too far away from these support, I believe you should hold. The catalyst for a re-rating of MISC is the completion of its disposal of its liner business while for YTLPower, the resolution of the PPA issue & the possible privatization of this group by its parent, YTL (see the YTLCement's privatization).

Alex Lu said...

Hi Jimmy Yeoh

Tongher has broken above the 2.50 resistance. Next resistance is at RM2.75-2.80. BTW the breakout seems to coincide with the proposed dividend payout of 22 sen. If this is the trigger, then we can expect a pullback after the dividend. You may want to time your entry or exit accordingly.

Glowing Giant said...

Hi Alex,
Any view on YTL?

At the current price, it is quite attractive.

Thanks

Great blog by the way.

Anonymous said...

Hi Alex

Thanks for your comment on Tambun and Tambun-OR. For your information, subscribe Tambun right share at 50sen now, confirm entitle its dividend of 3.8sen TE, yield as much as 7.6% net This is because tambun dividend will only announce in early June with ex-date sometime in Aug, while these right share will be list in bursa on 4 June.

cherng said...

alex,

can u please analyze a bit about PJ Development? This quiet stock shows no sign of uptrend, and its profit visibility seems not very clear and obvious.. Can u please comment?

Thanks..

cherng said...

also please comment Perstima, which share price look bad..

kelvinbbyeo 杨文华 said...

Dear Alex,

Can you comment on Maybulk and Maybulk CC? Price up for pass few days after down trend for last few months.

Regards,
Kelvin Yeo

Alex Lu said...
This comment has been removed by the author.
Alex Lu said...

Hi kelvinbbyeo 杨文华

Maybulk and Maybulk CC will be struggling as BDI is still very weak. For more, go to the link below.

If you don't mind holding onto something for a long time, you can do so with regards to the share. However, you should avoid holding onto something which diminish in value like a CW. So, I would suggest that you try to sell Maybulk-CC asap and do what you like with the share.

http://nexttrade.blogspot.com/2012/01/maybulk-recovery-rally.html

Alex Lu said...

Hi Glowing Giant

There are some positive reports on YTL and other listed companies within the group. The angle of play is privatization of the latter by their parent. The parent is being re-rated higher as the discount on it as a holding company is being rolled back.

Ignoring this angle, YTL is probably a good buy if it drop to RM1.60. It would face strong resistance at RM1.80. An upside breakout above RM1.80 could be very positive for the stock.

Alex Lu said...

Hi cherng

PJ Development trades within the range of RM0.60 & RM0.80. Unless the financial performance changed substantially, I believe this will remain. It is hanging onto the RN0.70 support but once this support is violated, the RM0.60 should be within reach. That would be a good entry to the stock.

Perstim is range-bound between RM3.30 & RM3.90. Please check the financial performance. See my earlier post on Perstim.

http://nexttrade.blogspot.com/2011/05/perstima-time-to-sell.html