Tuesday, March 29, 2011

Timber stocks- time for some profit-taking

Today, we can see many 2nd & 3rd liners in the timber sector participating in the rally. This means that the retailers are getting into the timber theme play. This is usually a good time to take some profit as retailers are normally late for any party. After them, who else is there to buy & support the rally?


Chart 1: WTK's weekly chart as at March 29, 2011_12.00 noon (Source: Quickcharts)



Chart 2: TaAnn's weekly chart as at March 29, 2011_12.00 noon (Source: Quickcharts)



Chart 3: Lingui's weekly chart as at March 29, 2011_12.00 noon (Source: Quickcharts)



Chart 4: JTiasa's weekly chart as at March 28, 2011 (Source: Quickcharts)
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6 comments:

  1. UnknownTuesday, March 29, 2011 4:26:00 PM

    hi Alex,
    Another good post.
    Is this also good time to take profit for the property stocks?

    Thanks!

    ReplyDelete
  2. OnegreatdealTuesday, March 29, 2011 10:29:00 PM

    Dear Alex,
    do u think is too late to buy timber stock now?
    If no, which stock do u recommend?
    Thanks and regards

    ReplyDelete
  3. goodluck88Wednesday, March 30, 2011 10:10:00 AM

    Hi Alex,

    Do you know how to calculate the reference price for PWORTH (7123) at RM0.77 today? Its rights issue EX at today.

    ReplyDelete
  4. WK888Thursday, March 31, 2011 12:34:00 PM

    there r still many cheap cheap timber stocks... EKSONS for instance...

    ReplyDelete
  5. Alex LuMonday, April 04, 2011 5:53:00 PM

    Hi Onegreatdeal

    I think the timber theme may continue for a while because the demand for timber products for the re-building program in Japan is real & substantial. You may go back into some of the timber stocks that had corrected or consolidated its recent sharp run-up. Laggards may join in the rally but normally the main beneficiary would be the big players from Sarawak. So, we are basically looking at TaAnn, JTiasa, Subur, Lingui & WTK.

    ReplyDelete
  6. Alex LuMonday, April 04, 2011 5:54:00 PM

    HI Wedding Gifts,

    At RM1.48, EKSONS is trading at a PE of about 9 times, which I consider to be fairly reasonable. The stock could potentially trade up to RM1.80-2.00.

    ReplyDelete