Thursday, June 23, 2011

RHBCap- buyers strike ended merger talk

According to a report in Malyasian Insider, Malayan Banking Bhd (Maybank) and CIMB Holdings Bhd have decided to abandon their separate plans to take over RHB Capital due to the higher price for a block of the bank’s shares sold recently. For more, go here.

This news can only be bad for RHBCap, which explained why the stock has been dropping for the past few days. This morning the stock hit a low of RM9.05. It may revisit this level again and possibly testing the psychological level of RM9.00. If the latter failed, the next strong support is the uptrend line & horizontal line at RM8.50.


Chart: RHBcap's daily chart as at June 23, 2011_11.00am (Source: Quickcharts)
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11 comments:

  1. 天河上游Thursday, June 23, 2011 11:43:00 AM

    Hi Alex,
    can you please comment on MAS and Hubline, Thanks

    ReplyDelete
  2. ycxiangThursday, June 23, 2011 12:29:00 PM

    But ADCB to sell RHBCap shares at RM10.80 each

    ReplyDelete
  3. benThursday, June 23, 2011 2:19:00 PM

    M'sia has a habit of always wanting the biggest, tallest, widest, fastest things but it dont work that way. Competition is needed not corruption or monopoly.

    ReplyDelete
  4. aroThursday, June 23, 2011 2:42:00 PM

    Your last analysis on Perisai was published on 23rd March 2011. Since then it reached a high of 93 sen on 30th March 2011. Today CIMB published a recomendation on Perisai which has escalated the interest on this stock. Could you please comment on Perisai. TQ

    ReplyDelete
  5. sookpengThursday, June 23, 2011 5:14:00 PM

    Hi Alex,
    Does it present a buy opportunity of RHBCap at this moment ? What is the fair price of RHBCap ?

    ReplyDelete
  6. vincentThursday, June 23, 2011 9:13:00 PM

    Hi Alex,

    Can you comment on HIRO,SUNWAY and WCT?What could be the best entry price for each of this?

    ReplyDelete
  7. JYThursday, June 23, 2011 11:24:00 PM

    Hi Alex.

    Crude oil has been dropping everyday. What's your view on this? How do you think it will affect the stocks particularly Esso? Thanks.

    ReplyDelete
  8. Alex LuMonday, June 27, 2011 9:24:00 AM

    Hi JY

    Esso looks very toppish. I believe that you should avoid the stock or take profit now.

    Esso's recent high profit is due to low inventory cost which lead to high profit margin. Once crude oil prices dropped, selling prices at the pump would ease off & the profir margin would normal. If crude oil prices dropped further, Esso would start to lose money.

    The high share price is not sustainable unless there is some corporate exercise.

    ReplyDelete
  9. Alex LuMonday, June 27, 2011 9:29:00 AM

    Hi vincent

    The good entry price for the following stocks:

    1) HIRO- at RM2.00 (LT uptrend line)

    2)SUNWAY- at RM2.55 (horizontal line) or RM2.45 (LT uptrend line)

    3) WCT- at RM2.95-3.00 (LT uptrend line)

    ReplyDelete
  10. Alex LuMonday, June 27, 2011 9:35:00 AM

    Hi aro

    I have read similar reports on Perisai a few weeks ago. I called a BUY on Perisai based strictly on technical analysis.

    On the same basis, I believe that the consolidation in Perisai is nearly over. The stock formed a base at RM0.70-0.80. The past 2 days, Perisai has recovered above the RM0.80 which could be the start of a recovery. However, the volume is not significant. If it can recruit sufficient support, The stock may continue to rise. Perisai would be going up against strong headwind from a declining crude oil prices over the next few weeks.

    ReplyDelete
  11. Alex LuMonday, June 27, 2011 9:39:00 AM

    Hi 天河上游

    Mt technical take on the following sotcks:

    1) MAS is still in a downtrend. It has a good rebound over the past few days. If it can cross the RM1.60 level, it may go further to test the RM1.75 level. I believe this rebound would be check between these two price levels.

    2) Hubline is still in a downtrend. It has formed a base at RM0.115-0.13. I believe it will continue to trade within this range for a while.

    ReplyDelete