Chart 1: POS's daily chart as at Aug 9, 2016 (Source: ShareInvestor.com)
POS broke below its long-term uptrend line, SS at RM3.50 in November 2015 - just before it announced that it would acquire two assets from its controlling shareholder, DRBHCOM, namely the entire stake in KL Airport Services Sdn Bhd ('KLAS') for RM766.16 million; and a piece of land measuring 9.9 acres in Pekan HICOM, Section 28, 40400 Shah Alam for RM69.0 million. The market does not view these related party transactions ('RPTs') favorably- leading to the sharp sell-down. For more on the RPTs, go here.
Chart 2: POS's monthly chart as at Aug 9, 2016_4.00pm (Source: ShareInvestor.com)
However, POS began to recover in March this year. The first rebound would not successful as it failed to break above the intermediate downtrend line, RR. In June, it managed to break above the intermediate downtrend line, RR at RM2.70. Today breakout of the horizontal line RM3.10 should signal the start of the uptrend for POS.
Chart 3: POS's weekly chart as at Aug 9, 2016_4.00pm (Source: ShareInvestor.com)
Notwithstanding my earlier stance on the RPTs, I believe that POS could be a good stock for long-term investment after today breakout of the horizontal line at RM3.10.