Wednesday, July 06, 2011

BIMB- time for some profit-taking

BIMB has been moving higher for the past 4 days. Suddenly, its 65%-owned subsidiary, Takaful also galloped higher today. As a rule, if a stock is in the center of a play & after a prolonged period of rallying higher, some players would start to switch from this stock to a related stock (for simplicity, let's call them A & B). The sudden rise of stock B normally signals an impending correction for stock A. As you may recall, BIMB is also fast approaching its resistance at RM2.60 as per my earlier post. Based on this, I think it is time for some profit-taking on BIMB.


Chart: BIMB & Takaful's daily chart as at July 6, 2011_4.30pm (Source: Quickcharts)
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4 comments:

  1. cheerWednesday, July 06, 2011 4:56:00 PM

    How you see MSM as it keep going up ?

    ReplyDelete
  2. tanWednesday, July 06, 2011 5:12:00 PM

    hi alex,
    what is your view on seg .should i buy it before the share split which is ex on 8 july or after the split?. technically it is quit ok. is it often they will jack up the price to split higher ?

    regards,
    tan

    ReplyDelete
  3. Alex LuThursday, July 07, 2011 12:40:00 PM

    Hi cheer

    MSM is probably being bought up by fund managers. This stock would be a component stock of the FBM-KLCI and it is also a stock within the consumer stable sector. It is now trading at a PE of 15.4 times its earning for FY2011 (estimated to be about 37.5 sen). If you compared it with the PE of 20 times for Khon Kaen Sugar, Thailand, then MSM has more room to go. Check out MIDF's report ( here ).

    ReplyDelete
  4. Alex LuThursday, July 07, 2011 2:32:00 PM

    hi tan

    When a temple gives out free food, the crowd comes everyday. The monks are doing the work of the Lord to feed the poor.

    When a businessman gives out free food, the crowd also comes everyday. Are the businessman doing the work of the good Lord? Or, is he fattening up the sheep for the slaughter?

    I do not which is better- to buy before or after the split.

    ReplyDelete