Thursday, December 30, 2010

IJM also dropped sharply

IJM plunged 37 sen to RM6.13 as at 11.30am this morning. At the low, it was trading at only RM6.07. From the daily chart, we can see that IJM tested its accelerated uptrend line at RM6.05 while the longer term uptrend line support is at RM5.70. It also has good horizontal support at RM6.10 & RM6.00.


Chart: IJM's daily chart as at Dec 30, 2010_11.25am (Source: Quickcharts)

Again, I have to reiterate that I do not know why this stock was dropping. The plunge coincides with a selldown for its subsidiary, IJMLand. As at 11.41 am, we can see that both IJM & IJMLand are trading off their low.

The selldown could have been a good buying opportunity for IJM when it tested its accelerated uptrend line at RM6.05 or at the horizontal line support of RM6.10.
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15 comments:

  1. AnonymousThursday, December 30, 2010 12:36:00 PM

    Hi Alex,

    The selldown must have some insider punter that already know ahead of these M&A call-off and market purposely
    lets these punter to sell their holding first before suspend these counter. Real unfair.........

    RHB Investment Bank Berhad and Newfields Advisors Sdn Bhd wish to announce that after a series of discussions, MRCB and IJM Land have not been able to reach an agreement on the definitive terms and conditions of the Proposed Merger. Accordingly, the Proposed Merger between MRCB and IJM Land is now aborted.

    ReplyDelete
  2. cheerThursday, December 30, 2010 12:44:00 PM

    http://www.theedgemalaysia.com/business-news/179390-flash-ijm-land-mrcb-merger-called-off.html

    ReplyDelete
  3. HarryThursday, December 30, 2010 4:22:00 PM

    Hi alex, Happy new year ! Can you comment on Delloyd? recently a lot of sharebuyback and might rally with rising CPO.

    And please comment on evergreen too, thank you :)

    ReplyDelete
  4. cheerThursday, December 30, 2010 4:47:00 PM

    HI Alex,

    Wish to enter masteel-wa. What is your view on this stock? How u think the demand of steel next year ?

    ReplyDelete
  5. klyThursday, December 30, 2010 9:13:00 PM

    Maybe investors are voting with their feet. MOU can simply be terminated. What a con job.

    ReplyDelete
  6. WKThursday, December 30, 2010 11:43:00 PM

    Whats the outlook on TDM chart?

    ReplyDelete
  7. Kevin SoonFriday, December 31, 2010 11:15:00 PM

    Hi,

    Wondered why Affin's price was not adjusted downwards after the 9sen dividend entitlement on 24 Dec 2010. I have also checked the historical data from Yahoo Finance and there wasnt any price adjustment.

    ReplyDelete
  8. Alex LuMonday, January 03, 2011 11:53:00 AM

    Hi Kevin Soon

    Affin's price did adjust downwards after the 9sen dividend entitlement on Dec 24, 2010. The share price dropped from RM3.20 on Dec 23 to RM3.15 on Dec 24 & then to RM3.09 on Dec 27.

    Bursa would adjust the reference price price on the ex-date to account for the dividend payment. Of course, one can only see the adjustment in the system on the ex-date & this is not reflected in your price data.

    ReplyDelete
  9. Alex LuMonday, January 03, 2011 2:31:00 PM

    Hi WK

    TDM is on a parabolic rise. It can potentially hit the January 1994 high of RM3.84. It has already surpassed the December 1993 high of RM3.30.

    A stock on a parabolic is very exciting but one must always be wary that a parabolic rise will eventually end with a nasty drop. The trick is getting in early (just as the stock appears to be on the cusp of a parabolic rise) and getting out before the drop. Very few get it right. I would advise you not to try.

    ReplyDelete
  10. Alex LuMonday, January 03, 2011 2:39:00 PM

    Hi cheer

    The steel sector is awaiting the start of the many construction projects in the pipeline. However, the liberation of this sector means that the players would face competition from overseas producers, especially the Chinese producers.

    Masteel has recently surpassed the strong horizontal resistance at RM1.10. Its next resistance is at RM1.40-1.50. The warrant is newly issued with a tenor of 5 years & an exercise price of RM0.67. At the present market prices, it has a premium of only 6%- very reasonable.

    ReplyDelete
  11. Alex LuMonday, January 03, 2011 3:32:00 PM

    Hi Harry

    Delloyd is testing its horizontal resistance is at RM3.50. If it can cross this level, its next resistance is at RM3.70-3.80. Will it finish off its present upleg with a parabolic rise like Jan-Feb 2000 where the stock shot up from RM3.00 to RM6.00? Let's wait & see.

    Delloyd has a program of share buyback which is fairly consistent albeit still moderate in quantity. As at Dec 27, its treasury stock position accounts for 2.53% of its outstanding shares capital. For a quiet stock, share buyback can lead to higher prices which may not be justifiable after a certain level. Delloyd (at RM3.51) is currently trading at a PE of about 8 times. Until the PE hit the 10-time mark, Delloyd's share buyback would not raise any eyebrow.

    ReplyDelete
  12. WKMonday, January 03, 2011 4:52:00 PM

    any example for a parabolic rise? any article to share?

    thanks

    ReplyDelete
  13. kellyTuesday, January 04, 2011 11:57:00 AM

    kelly said.......Hi Alex,whats the outlook on mbmr chart ?

    ReplyDelete
  14. Alex LuTuesday, January 04, 2011 9:24:00 PM

    Hi kelly

    In short, MBMR's price movement over the past 3 weeks- taken together with the price movement of Proton- is telling us that the proposed merger of Perodua & Proton is not off. If that panned out, MBMR may soon test the strong horizontal resistance of RM3.50-3.60.

    ReplyDelete
  15. IvanThursday, January 06, 2011 2:03:00 PM

    Bro,

    Happy New YEar !!!
    I come here for 3 days, saw no yet upload new article. Busy with recent bull mkt? :D

    manage make any angpow? :D

    ReplyDelete