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Tuesday, July 31, 2012

AEONCr- time to take some profit

AEONCr is one of the best calls that I have ever made. I first posted on it in April 2011 (here) when the stock was trading at about RM4.10. The rise in the share price was well-supported by the rise in its company's earning. From April 2011 to April 2012, its trailing 4-quarters' EPS jumped from 53 sen to 80 sen while the share price rose 2.8 times to about RM11.00.

From the chart below, we can see that the stock has begun to exhibit some signs of weakness.All three indicators are pointing downward. A break below the 10-week EMA line at RM10.80 could bring forth a more meaningful consolidation.

Based on the sharp rally over the past one year and signs of technical weakness, I believe it is good time to take some profit on AEONCr.


Chart: AEONcr's weekly chart as at July 31, 2012 (Source: Quickcharts)

3 comments:

Big Sea said...

Selling AEONCR is a tough decision to make. I have holding it since RM 2.6. Everytime I thought about selling it, the 6-8% dividen yield and the aggressive EPS growth tempted me not to do so !

Unknown said...

Sometimes it is better not to waste time on silly comments by silly readers.

Alex Lu said...

Hi Big Sea

I agree. It was also tough to make a call to take profit on AEONCR.

When I first started blogging, I will write a post and publish it the next day. I would worry about getting it wrong and readers losing money on account of my call.

That feeling is still with me even today. It is difficult to call a buy on a boring stock like Shang, just as it is difficult to call a sell on a performer in its day, like IOI, TChong, KSeng or Jerneh. Of course, along the way, you have a few misses here & there but as long as there are more hits than misses, I'll still be in the game.

Check out the above sell call below:

http://nexttrade.blogspot.com/2008/07/iois-bearish-reversal-sighted.html

http://nexttrade.blogspot.com/2010/12/tchong-time-for-some-profit-taking.html

http://nexttrade.blogspot.com/2010/05/time-to-take-profit-part-2.html