Thursday, June 06, 2013

Scomies or Scomien or Scomi?

In the past few days, Scomies [in full, Scomi Energy Services Bhd (formerly known as Scomi Marine Bhd)] has been rallying. It broke above its horizontal resistance at RM0.42 and it soared nearly 80% to close at RM0.755 this morning.

Chart 1: Scomies's weekly chart as at June 6, 2013_12.30pm (Source: Quickcharts)

Would this play spill over to its sister company, Scomien which is involved in the provision of solutions for the transportation industry, ranging from monorail systems, buses and special purpose vehicles. With the government considering another 2 MRT lines (in addition to the maiden Sungai Buloh-Kajang MRT project), Scomien may get involved in a domestic project where the margin may be more attractive. Scomien may be breaking above its long-term downtrend line at RM0.50.

Chart 2: Scomien's weekly chart as at June 6, 2013_12.30pm (Source: Quickcharts)

Finally... what about the parent company, Scomi? IJM has bought into this company with the hope of getting into the Oil & Gas business and possibly the transport engineering business. If Scomi can surpass the recent high at RM0.44, we may see a decent rally to RM0.56 & then to RM0.71.

Chart 3: Scomi's weekly chart as at June 6, 2013_12.30pm (Source: Quickcharts)

Between these three stocks, my preference is for Scomi.

In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Scomi, Scomies & Scomien.

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