This morning, IOI broke above its horizontal line RM6.00 and went to an intra-day high of RM6.16 before correction set in. This means that IOI nearly tested the line connecting its recent peaks (RR) at RM6.20. If IOI does not drop below the RM6.00 resistance-turned-support, there is a good chance that the stock will retest the RR resistance at RM6.20 & then the next horizontal resistance at RM7.00. As such, IOI could be a trading BUY.
Chart: IOI's weekly chart as at Jan 4, 2011_10.10am (Source: Quickcharts)For those with a more aggressive appetite, you may try any one of the CWs or the CBLC listed below, except IOI-CQ. The premium of 4-6% for these instruments are fairly reasonable.
Table: IOI's CWs & CBLC valuation & terms
Hi Alex, can you comment on MAEMODE.
ReplyDeleteThese stock have proposed 1 for 3 warrant, each at 2sen for 10yr validity and exercise price is at its par value RM1.00. I found these stock have potential upside like PJdev, which have previous also issue warrant 3 for 8 and have let my portfolio gain as much as above 40% nett return.
Other catalyst that i can think of are MAEMODE current trading at 56sen is almost <0.3x price/NTA; PE<9x and currently trade cum dividend of 1sen (asset-rich but rather poor cash flow and have high gearing).
Nevertheless, with recent secure project from Indo and sub-contract from LCCT, MAEMODE earning could regain momentum and resume its EPS above 10sen
Hi hng
ReplyDeleteI am happy to hear that you have done very well in PJDev.
MAEMODE may not be a good stock to get into. Its financial performance is disappointing. Its financial position as at 31/8/2010 is very poor. Debt to equity is high at 1.5 times (as noted by you). While current ratio is acceptable at 1.4 times, the bulk of the Current Assets is in Trade Receivables which has a collection period of 296 days! This long collection period raises concern about the quality of these debtors.
Technically speaking, the company's share price performance is quite telling: since its listing in 2000, Maemode has been in an unbroken downtrend.
Based on the above negative factors, I would avoid this stock.
hi, alex, thanks 4 your comment on kian joo & fajar
ReplyDeletei have a difficult question 2 u..
i bought IRIS berhad recently, as i think it a good buy . as i screen through bursa, i think iris is 1 of the
penny stock that is really making money, as
now profit q to q increasing...n
av 0.24, pe about 7..debt is reducing tremendously ..
i cant find any research material on it, i think its not cover by any reserach house..
just wanted to find out your opinion on it..