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Tuesday, October 06, 2015

FLBHD: Breaking higher

One of the stocks that impressed me a lot over the past few days has been FLBHD. It rallied from an intra-day low of RM1.27 in mid-August to an intra-day high of RM1.99 today. That's very commendable for a stock that did not drop sharply in the recent selldown.

I must admit that I was more surprised to discover that I had called a BUY on this stock in late August and forgot about it. I racked my brain, wondering why did I make such a call since I was rather bearish at that point of time. After re-reading my earlier post again, I understand why. Go ahead and read it for yourself.

Anyway, FLBHD has broken above the neckline of its inverted head and shoulders formation (which strangely appeared not at the end of a downtrend). This means the head and shoulders formation is now a continuation pattern (not a reversal pattern) and the stock will likely go higher. I have projected a target price of RM2.35 for the current move.

Based on the above, FLBHD could be a trading BUY. Good entry level could be at RM1.80-1.85. Immediate resistance at the psychological RM2.00 mark. Good luck!


Chart: FLBHD's weekly chart as at Oct 6, 2015_10.30am (Source: ShareInvestor.com)
 
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, FLBHD.

2 comments:

Yong Siew Kit said...

Dear Alex,

But the owner of this company keep on disposing shares since Sept 2015.

Will this be something fishy?

Alex Lu said...

Hi Yong Siew Kit

I saw the changes in shareholdings, which I listed down below:

1) An earlier group of shareholders (a few Lus & one Chen) sold out in Jan-Jun this year; and
2) The Lins bought into or raised their stakes in the company; holding sizable personal stakes and indirect block of 15-17%.

The Lins increased their personal stake from Mar to Jul. In Sep, they started reducing their personal stakes. The quantum sold is sizable (50k-100k) but their remaining shareholding is still very substantial.

Given the current economic uncertainty and currencies fluctuation, it is possible that the selling may be for personal reason involving a small position that was recently acquired for "trading purpose". Of course, if viewed together with the sales by the Lus & one Chen earlier, this development could be a cause for concern.

If you feel uncomfortable, then you should avoid the stock or take only a small position.