Thursday, March 11, 2010

Leader- a possible Trading BUY

Leader has just done an upside breakout of its symmetrical triangle at RM0.92. Its next resistance is at RM1.00 & thereafter at RM1.20.


Chart 1: Leader's daily chart as at Mar 11, 2010_9.30am (Source: Quickcharts)


Chart 2: Leader's weekly chart as at Mar 11, 2010_9.30am (Source: Quickcharts)
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12 comments:

  1. kayrollThursday, March 11, 2010 11:06:00 AM

    Alex,
    You should take a look at Tongher. I think it has prospect of a good uptrend climb. Fundamental is good as well. This counter was suggested by my cousin.

    ReplyDelete
  2. SureWinThursday, March 11, 2010 11:55:00 AM

    Good day Alex,

    Kindly provide TA and FA analysis for YUNG KONG GALVANISHING IND. What would the expected uptick in the steel industry benefits YK ?

    Appreciate your detailed analysis, and thanking you in advance.

    Rgds-SureWin1Woh

    ReplyDelete
  3. solomonThursday, March 11, 2010 12:13:00 PM

    Good day Alex,

    Any thought on MPHB and MTD Capital? Any upside potential?

    ReplyDelete
  4. cheerThursday, March 11, 2010 4:59:00 PM

    Hi Alex,

    Can this news http://thestar.com.my/news/story.asp?file=/2010/3/11/nation/20100311131022&sec=nation make property and construction stocks move up ? If yes, what stock u will recommend?

    ReplyDelete
  5. Alex LuFriday, March 12, 2010 8:17:00 AM

    Hi Ijanmaster,

    As noted in the previous post, European Communities ("EC") had initiated an anti-dumping and anti-subsidy proceeding concerning imports of certain stainless steel fasteners and parts thereof originating in India and Malaysia. This proceeding may affect Tongher's financial performance in the next few quarters.

    However, it should be noted that Tongher is very well-managed company. Its financial position is satisfactory. I believe the stock has been bottoming at RM1.60-80 over the past 15 months, with a symmetrical triangle formed. An upside breakout at RM2.10-15 could be the start of the next upleg for the stock.

    ReplyDelete
  6. Alex LuFriday, March 12, 2010 8:30:00 AM

    Hi Surewin1woh,

    Yunkong recorded a net profit of RM9.9 million on turnover of RM341 million for FYE31/12/2009. Based its closing price of RM0.515 & its FY2009 EPS of 5.08 sen, Yunkong is trading at a PER of 10 times. At this level, it is nearly fully valued.

    The concern for this stock is its financial position, which is less than satisfactory. As at 31/12/2009, its gearing ratio (total debts to equity) is high at 1.7 times, while liquidity is a bit tight as reflected by current ratio 1 time. The company has recently announced a proposal to issue RM21.7 million worth of Redeemable Convertible Preference Shares (RCPS). The amount involved is rather small & would only improve the liquidity position marginally but hardly make a dent to the high leverage position.

    Due to the less than satisfactory financial position, Yunkong may have difficulty recruiting investors' support.

    ReplyDelete
  7. Alex LuFriday, March 12, 2010 8:55:00 AM

    Hi Solomon,

    MTD has very strong horizontal resistance at RM3.50. If it can surpass this level, it may test the high recorded in January 2007 (stretching from RM4.60 to RM5.60).

    MPHB's next upleg may only commence in earnest after it has cleared the psychological RM2.00 level. Thereafter, its next resistance is at RM2.50-70.

    ReplyDelete
  8. cheerFriday, March 12, 2010 9:09:00 AM

    HI Alex,

    Pls comment KPJ.

    TQ

    ReplyDelete
  9. Alex LuFriday, March 12, 2010 9:15:00 AM

    Hi Cheer,

    If the article that you were referring to is entitled "New Economic Model to be launched March 30", then I would say that it is more 'cheerleading' than a call to buy stock. Nevertheless, there is no denying that our government has slowly waken up to the challenging economic environment imposed by the rise of other economies, such as China & India (and to a lesser extent Indonesia & Vietnam). By doing the necessary weight-lifting, like liberalizing & restructuring etc, Malaysia may stop the slide down the list of desirable investment destinations. If this succeeds in changing the investors' perception about Malaysia, it should be positive for our stocks. At this moment, the jury is still out.

    However, my call to look at property stocks was prompted by the sharp rise in the value of recently-launched properties and the big demand for these properties. Developers from E&O to MKLand were able to launch condominiums at prices that are easily RM100-200 psf higher than similar condominiums launched last year. Since the cost of construction hasn't jumped that much, the increased selling price would lead to a sharp rise in profit margin. As such, I expect property developers to report big profit in 2010.

    ReplyDelete
  10. Alex LuFriday, March 12, 2010 9:18:00 AM

    Hi Cheer,

    I have commented on KPJ earlier. To wit:

    "KPJ has gone up from RM0.40 in 2002 to RM2.80 in Jan 2010. These prices were adjusted for the recent corporate exercise of 1-to-2 share split, followed by a bonus of 1-for-4. The basic full-year EPS is now about 19 sen and KPJ (closed at RM2.62 yesterday) is now trading at a PER of 14 times. It is possible that it may trade up to a PER of 15-18 times due to its steady growth. If so, KPJ may still go up by 10-30% from here."

    ReplyDelete
  11. My Fairy Tale~~Friday, March 12, 2010 12:38:00 PM

    Hi Alex,

    Mind to share your view on ENGTEX?

    ReplyDelete
  12. Kevin SoonMonday, March 22, 2010 10:56:00 PM

    Hi Alex,

    This bullish upside breakout is accompanied with a bearish divergence with the MACD line.

    At the rightmost edge, the MACD line did not exceed the Jan high and is flattening.

    Given this mixed signal, what is the normal rule of thumb when considering whether to go long or to stand aside?

    ReplyDelete