Monday, January 03, 2011

IJMLand & MRCB's proposed merger aborted

Last week we saw the sudden selldown for IJMland & IJM. Subsequently these stocks & MRCB were suspended and a short announcement was made that IJMland & MRCB's proposed merger was aborted as the parties were unable to come to a definitive agreement. Like many analysts, I do not believe this development would be medium or long-term negative to any of these companies. However, the share prices of all these companies would see some selling pressure over the next few days. If the critical supports are not violated, this could be a buying opportunity.

1. IJMland

The strong supports are the horizontal lines at RM2.65 (tested last Friday) & RM2.45. It is critical that IJMland must not break below the 3rd fan trendline support at RM2.55. A break of this trendline could result in a reversal of the prior uptrend.


Chart 1: IJMland's weekly cahrt as at Dec 30, 2010 (Source: Quickcharts)

2. MRCB

It has a strong support at the horizontal line cum uptrend line support at RM1.80.


Chart 2: MRCB's weekly cahrt as at Dec 30, 2010 (Source: Quickcharts)

3. IJM

Its strong strong is at the horizontal line RM5.70 & the uptrend line support at RM5.40.


Chart 3: IJM's weekly cahrt as at Dec 30, 2010 (Source: Quickcharts)

I foresee the trading of these 3 stocks to be very volatile today & if you are interested to get into these stocks for whatever purpose, do exercise your discretion.
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7 comments:

  1. NightwatchmenMonday, January 03, 2011 12:08:00 PM

    Hi Alex

    Can u comment on DXN and ASB ? Thanks

    ReplyDelete
  2. LimMonday, January 03, 2011 1:41:00 PM

    Hi Alex,

    Happy New Year to you!
    Can you please comment on Huaan?
    Besides that, do you foresee any price upward for Malton after it announced the right issues?
    Thanks!

    ReplyDelete
  3. BlueskyMonday, January 03, 2011 9:22:00 PM

    Hi Alex,

    Would you enlighten about Cypack Resources Bhd. I hardly find their company background, who run the company and etc.

    thanks

    ReplyDelete
  4. PEGGY MethodMonday, January 03, 2011 9:58:00 PM

    Previously the price up is due to merger. Opinion is, it will face resistence if the price rebound.

    ReplyDelete
  5. LoryauMonday, January 03, 2011 10:44:00 PM

    hi Alex... im currently looking at Kfima n Guangchg... can u pls tell me wat do u think bout hits 2 stocks?

    ReplyDelete
  6. Alex LuTuesday, January 04, 2011 9:34:00 PM

    HI Loryau

    I have been commenting on Kfima on & off for the past 6 months. As such, I have nothing to add to those comments.

    As for Guangchg, it is at the all-time high. While one can say that this is a very bullish thing- a blue sky scenario- but we must accept that this rally is brought on by 2 things:
    1) a 1-for-3 bonus issue & a 1-for-4 free warrant issue; and
    2) a bottom-line that was fattened-up by a sharp rise in cocoa prices; thus leading to one-off jump in profit margin.

    Both events are unlikely to recur. As the saying goes, "make hay while the sunshine".

    ReplyDelete
  7. Alex LuTuesday, January 04, 2011 9:37:00 PM

    Hi Bluesky

    I have read about Cypack & I feel that it is a very promising company. Chartwise, it is in an uptrend. You may use the 10-day SMA line (currently at RM1.40) as its support & guide for gaining entry into the stock.

    ReplyDelete