Wednesday, June 01, 2011

BIMB- no merger, no problem

One of my clients brought up BIMB for my attention today. I have never looked at this stock before but I was very surprised that it has a very nice chart. It looks like BIMB broke above its long-term downtrend line at RM1.50 in March. The stock did not rally after that breakout & it had in fact slid back to test the downtrend line in May. The recent announcement of a possible tie-up or merger between BIMB & Bank Muamalat could have added spice to this stock. However, BIMB has just announced that it is not keen to merge with bank Muamalat (here).

If the stock can recruit enough support, it may launch into an upleg where the first resistance is at the horizontal line RM2.00 & then the cluster of horizontal lines between RM2.60 & RM2.80.



Chart: BIMB's monthly chart as at May 3, 2011_plotted on log scale (Source: Tradesignum)

Based strictly on technical analysis, BIMB could be a good trading BUY.
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6 comments:

  1. primepengWednesday, June 01, 2011 8:50:00 PM

    Which bank program are you using? The historical price is more complete and good for doing analysis. other bank doesn't provide data beyond 2009 and keep flushing out each day passing by. are you using Jupiter or maybe itrade? I've seen this screenshot in other websites. The curve is smooth and looks much more like a graph, unlike vertical curves display for each price increment. tx

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  2. Alex LuFriday, June 03, 2011 12:17:00 PM

    hi primepeng

    Nothing fanciful. I just use Tradesignum. Go to my resources & click on Tradesignum to try out the charts.

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  3. primepengSaturday, June 04, 2011 4:50:00 PM

    thanks. I am sure it will be a useful tool for future analysis.

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  4. solomonMonday, June 06, 2011 9:18:00 PM

    Any thought on this stock called amcorp property?

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  5. sookpengFriday, June 10, 2011 5:28:00 PM

    Hi Alex,
    Is Maybank still a good buy ? Quite decent dividend and positive outlook in anticipation of positive contribution from Indonesia's investment.

    Thanks,
    SP

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  6. Alex LuFriday, June 10, 2011 6:23:00 PM

    Hi sookpeng

    I think Maybank is still a good buy. Kenanga valued this stock at RM10.60. The other banking stocks that you can look at is CIMB & PBBank, which are valued at RM9.70 & RM14.80 respectively by Kenanga.

    My preferred banking stocks for the next 1-3 months are for Maybank & CIMB for the above reason (i.e. good value) as well as the potential inflow of speculative buying as these two banks bid for RHBCap. You can get into these stocks now & hold them until a few days before the result of the bidding is announced. Once the result is made known, the price would drop back. The winner may turn out be the loser, as it would have paid a bomb for the acquisition. The loser would definitely look like a loser as it would be sitting a distant second from the top guy. The only winner is EPF, which is not too bad as all of us have some saving there.

    Good luck!

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