Thursday, March 31, 2011

GenM may have a bullish breakout

I'm posting this next bullish breakout with some hesitation. You guessed it: GenM, the perennial runt in the Genting group, has just broken above the 'horizontal' resistance at RM3.65. The target price for this rally (if it comes true) would be RM4.00-4.10. Dare you buy into this trade?


Chart 1: GenM's daily chart as at Mar 31, 2011_4.30pm (Source: Quickcharts)



Chart 2: GenM's weekly chart as at Mar 31, 2011 (Source: Quickcharts)
[Note: This was added subsequently to show the upcoming horizontal resistance.]

For those who want to punt on this bullish breakout, you may try the CWs (see the table below). All the CWs are fairly priced but my preference is for GenM-JA.


Table: GenM's CWs' terms & valuation
at

13 comments:

  1. IvanThursday, March 31, 2011 6:54:00 PM

    Great call!

    By the way, any idea about GAMUDA?
    Thanks

    ReplyDelete
  2. cheerThursday, March 31, 2011 8:03:00 PM

    Hi Alex

    Kindly comment about Notion .

    ReplyDelete
  3. cheerFriday, April 01, 2011 8:36:00 AM

    Hi Alex,

    I 4see there are big accumulation in glove stocks at this moment either by shareholders or EPF or LTH

    Do you think is right time to enter ?

    ReplyDelete
  4. Mad InvestorFriday, April 01, 2011 11:58:00 AM

    what's a JA? similiar to CA?

    ReplyDelete
  5. leslieroycarterFriday, April 01, 2011 12:26:00 PM

    Hi Alex:
    When most of the shares are up correspondingly the warrants are also up in tandem. On top of that , most of the warrants are coming to maturity within months . Thus only the dare-devils who never say die are advised to venture and not for the soft-hearted type. It is just my opinion.Say what you may like.

    ReplyDelete
  6. Mad InvestorFriday, April 01, 2011 4:12:00 PM

    GenM bought Pan Malaysian Pool.

    ReplyDelete
  7. nr.24Saturday, April 02, 2011 10:42:00 PM

    do visit my for more analysis on klse stocks okay. http://theklsewolf.blogspot.com

    ReplyDelete
  8. UnknownSunday, April 03, 2011 9:53:00 PM

    Dear Alex,

    What do you think about masterskill ?

    ReplyDelete
  9. Alex LuMonday, April 04, 2011 3:47:00 PM

    Hi Mad Investor

    Despite various reports in the newspapers, there has been no official announcement that GenM has bought in Pan Malaysian Pool. The drop in the share price today is rather peculiar. Is the market saying that it viewed this acquisition negatively? Or, is it saying that it may not pan out as reported in the newspapers?

    GenM-JA is a CBLC, which is very similar to a CW. You may check out my earlier posting on CBLCs.

    ReplyDelete
  10. Alex LuMonday, April 04, 2011 3:49:00 PM

    Hi leslieroycarter

    What can I say: One Person's Meat Is Another Person's Poison.

    ReplyDelete
  11. Alex LuMonday, April 04, 2011 4:11:00 PM

    Hi cheer

    Notion has a breakout above its medium-term downtrend line at RM2.10. Its first resistance level is at RM2.15 and then at RM2.50 & RM2.60.

    On rubber glove sector, your guess is as good as mine. However, this sector may benefit from any correction in rubber latex prices as well as the strengthening of the USD, which I have posted on earlier. This has now been proven to be short-lived. As such, the recovery in this sector may not have started or it would not be as swift as I had hope for.

    ReplyDelete
  12. Alex LuMonday, April 04, 2011 4:13:00 PM

    Hi Ivan

    GAMUDA seems to have found some support & is poised for a rebound. For the rally to gain traction, it must first surpass the immediate string horizontal resistance at RM3.90-3.95.

    ReplyDelete
  13. UnknownMonday, April 04, 2011 8:20:00 PM

    Hi..
    What do you think about Eng tecknologi holding bhd?

    Thanks

    ReplyDelete