TChong: It can't be that bad?!

Not too long ago, TChong was celebrated as a darling of the Malaysian automotive sector. Its share price rose from RM1.50 in 2007 to a high of nearly RM7.00 in 2013. It had a string of new models; tie-ups with Nissan to tap new markets (Vietnam, Cambodia, Laos & Myanmar); and, the prospect of huge gain from the sale or development of its Segambut land.

Those days seem like a distance memory. The overseas markets did not yield as much profit as projected. The Segambut land development would have to wait in the light of the poor property market. Finally, new models that used to bedazzle the crowd seem to draw lukewarm response.

With poorer financial results, TChong share prices dropped back to RM3.00. Even at this low price, it did not find many takers. People may shout: When the going get tough, the tough get going. The truth is nothing succeeds as well as success and nothing recedes as fast as success. TChong will learn that you are just as good as your last model. And, for all the wannabe investment bloggers out there, remember this: You are as good as your last good call! I'm digressing...

Back to TChong! I have appended below 3 charts- TChong & AP's weekly charts as well as TChong/APM composite monthly charts. APM and TChong are controlled by Tan Chong Group.

 
Chart 1: TChong's weekly chart as at April 22, 2015_11.00am (Source: Share Investors)

 
Chart 2: APM's weekly chart as at April 22, 2015_11.00am (Source: Share Investors)

If you look at TChong/APM composite monthly chart (Chart 3), you will see that APM & TChong bottomed and peaked about the same time. You can see that APM has recently rebounded back from its low. If the correlation between APM & TChong persist, the recovery in APM holds 2 possibilities for TChong; the stock is either at the stage of forming its bottom or it is about to rebound back (like APM). Being a conservative, I would hold out for the first possibility. And, if you're a patient sort of investor, you wouldn't mind considering TChong for your long-term investment.

 
Chart 3: TChong & APM's monthly chart as at April 22, 2015_11.00am (Source: Share Investors)

Note: 
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, TChong & APM.