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Friday, July 16, 2010
Lonbisc may have a bullish breakout
Lonbisc has just broken above its downtrend line at RM1.13-15. Its next ressitance levels are at RM1.30, RM1.50 & RM1.65.
Chart: Lonbisc's weekly chart as at July 16, 2010_9.25am (Source: Quickchart)
Based on the above, Lonbisc could be a good trading BUY.
Honam Petrochemical Corp, South Korea’s second-largest ethylene maker, agreed to buy a 73 per cent stake in Malaysia’s Titan Chemicals Corp from the Chao Group and a Malaysian state-run fund, it said in an e-mailed statement today.
The company will seek to buy additional Titan shares on the market to acquire 100 per cent at a total cost of 1.5 trillion won (US$1.25 billion), it said. -- Bloomberg
Alex, how much do you think Titan share will rise with this news? thanks
Take it from Wedding Gifts etc, the price would approximately be RM2.32. This is arrived at by dividing the sale price of USD1.25 billion by the share cap of TITAN [of 1.752 billion shares]. The only uncertainty is whether the USD1.25 billion is for the PNB & Chao Group's combined stake of 726.% or for the entire company. I assume it is for the entire company.
Fitters' EPS is about 8 sen. At RM0.86, Fitters is now trading at a PE of about 11 times. For a small-cap, it is fully valued.
Fitters has however proposed a 1-for-2 bonus issue (BI) on May 18. BI can do wonders to a stock. So, I expect Fitters to climb further. It has broken above the strong horizontal resistance of RM0.75. Its next resistance will be at the RM0.90.
CSCSteel has tested its 200-day SMA line at RM1.55 last week & rebounded. This rebound could pick up strength & propel the stock to RM1.80.
Its past 3 quarterly results has been quite good, with EPS of about 9 sen per quarter (or, 36 sen per annum). At RM1.65, CSCSteel is trading at a low PE of 4.6 times.
based on cheap valuation, CSCSteel can be a long-term BUY. Good entry is at RM1.60.
Gamuda-ja stands for GAMUDA CALLABLE BULL CERTIFICATES ('CBLC'). A CBLC is quite similar to a call warrant ('CW'), except for a Mandatory Call Event ('MCE'). A MCE is the issuers' right to call the CBLC, which leads to the suspension of the CBLC, should it reach the call price, prior to the expire date of the certificates.
For CBLCs, the call price is either at or above the exercise price of the underlying instrument.
If the call price is equal to the exercise price, investors will not receive any cash amount. If the call price is different from the exercise price, cash settlement will be done based on an established formula.
I will post more on this later but offhand, CWs appear to be better than CBLCs.
Alex, I am surprised titan is sold at 2.35 lower than its NTA of 2.42. are the major shareholders so desperate to sell ? And from announcement date that titan would be sold to confirmation is about 1 month, a bit quick isn't it?
HI Alex, Titan will be sold.
ReplyDeleteHonam Petrochemical Corp, South Korea’s second-largest ethylene maker, agreed to buy a 73 per cent stake in Malaysia’s Titan Chemicals Corp from the Chao Group and a Malaysian state-run fund, it said in an e-mailed statement today.
The company will seek to buy additional Titan shares on the market to acquire 100 per cent at a total cost of 1.5 trillion won (US$1.25 billion), it said. -- Bloomberg
Alex, how much do you think Titan share will rise with this news?
thanks
US1.25billion / share cap of TITAN?
ReplyDeleteTDM is on a bullish breakout as well?
hi bro. please comment on Fitters. will it break RM1.00 ?? how it momentum, will continue rise further ?? can enter at current price ??
ReplyDeleteHi Alex,
ReplyDeleteWhat do you think about CSC steel?
hi alex
ReplyDeletewhat is gamuda-ja ?
hi alex
ReplyDeletewhat is gamuda-ja ?
Hi CK,
ReplyDeleteTake it from Wedding Gifts etc, the price would approximately be RM2.32. This is arrived at by dividing the sale price of USD1.25 billion by the share cap of TITAN [of 1.752 billion shares]. The only uncertainty is whether the USD1.25 billion is for the PNB & Chao Group's combined stake of 726.% or for the entire company. I assume it is for the entire company.
Hi wong,
ReplyDeleteFitters' EPS is about 8 sen. At RM0.86, Fitters is now trading at a PE of about 11 times. For a small-cap, it is fully valued.
Fitters has however proposed a 1-for-2 bonus issue (BI) on May 18. BI can do wonders to a stock. So, I expect Fitters to climb further. It has broken above the strong horizontal resistance of RM0.75. Its next resistance will be at the RM0.90.
Hi Timothy
ReplyDeleteCSCSteel has tested its 200-day SMA line at RM1.55 last week & rebounded. This rebound could pick up strength & propel the stock to RM1.80.
Its past 3 quarterly results has been quite good, with EPS of about 9 sen per quarter (or, 36 sen per annum). At RM1.65, CSCSteel is trading at a low PE of 4.6 times.
based on cheap valuation, CSCSteel can be a long-term BUY. Good entry is at RM1.60.
Hi abc,
ReplyDeleteGamuda-ja stands for GAMUDA CALLABLE BULL CERTIFICATES ('CBLC'). A CBLC is quite similar to a call warrant ('CW'), except for a Mandatory Call Event ('MCE'). A MCE is the issuers' right to call the CBLC, which leads to the suspension of the CBLC, should it reach the call price, prior to the expire date of the certificates.
For CBLCs, the call price is either at or above the exercise price of the underlying instrument.
If the call price is equal to the exercise price, investors will not receive any cash amount. If the call price is different from the exercise price, cash settlement will be done based on an established formula.
I will post more on this later but offhand, CWs appear to be better than CBLCs.
alex,
ReplyDeletebonia has a bullish breakout as well?wht do think?
Alex, I am surprised titan is sold at 2.35 lower than its NTA of 2.42. are the major shareholders so desperate to sell ? And from announcement date that titan would be sold to confirmation is about 1 month, a bit quick isn't it?
ReplyDelete