Tuesday, September 06, 2011

Some stocks to consider...

I keep getting queries or questions about good stocks to consider, whether for investment or for trading purposes. I am quite conservative and, in times like this, I tend to hide in a shell. But, the calls get louder and more persistent. Against my better judgement, I would list down a few stocks that you can consider- for small exposure only. The first stock is strictly for illustration. It is BRDB which hit its uptrend line & strong horizontal support at RM1.86 in late July. Despite the bearish market, BRDB rebounded handsomely. (Note: I suspect BRDB is working out a deal or something.)


Chart 1: BRDB's weekly chart as at Sept 6, 2011 (Source: Tradesignum)

The second stock is MPHB, which is testing its intermediate term uptrend line at RM2.60. Its strong horizontal support is at RM2.50-2.60.


Chart 12 MPHB's weekly chart as at Sept 6, 2011 (Source: Tradesignum)

Thirdly, TWSCorp which has tested its intermediate uptrend line at RM0.75. This happens to be a strong horizontal support level.


Chart 3: TWSCorp's weekly chart as at Sept 6, 2011 (Source: Tradesignum)

Finally, BJCorp which is testing its long-term uptrend line at RM0.95-1.00. Again, this happens to be the strong horizontal support level.


Chart 4: BJCorp's weekly chart as at Sept 6, 2011 (Source: Tradesignum)

This is not an exhaustive list. You should check out some of your favorite stocks using Tradesignum charts. Set the Date Range to 5 years and take a good look at the chart. Does the chart strike you as interesting or promising? Is the share price approaching a strong support level? If so, you should earmark the stock. If our market stabilizes along with other Asian markets, you may like to get into these stocks and wait for the bear rally to kick in. However, it is important that you guard yourself against over-exposure in this treacherous market. And, eh.. Good luck!
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10 comments:

  1. ahfookWednesday, September 07, 2011 1:24:00 PM

    How about mashing?seem like triple bottom in progress?

    ReplyDelete
  2. AlexPWednesday, September 07, 2011 3:29:00 PM

    Alex, would like to call your attention to Uchitec.

    - At RM 1.20 support level
    - Likely to payout 12 sen dividend in the next 2 quarters. That's a 10% yield in 6 months.
    - RM 150 million cashpile
    - Zero debts

    Thanks!

    ReplyDelete
  3. DJ MaxWednesday, September 07, 2011 3:40:00 PM

    M-Shape..
    Asking you to eat some McDonalds before surging. :)

    ReplyDelete
  4. IvanWednesday, September 07, 2011 4:04:00 PM

    thanks bro for the tips..

    ReplyDelete
  5. Alex LuWednesday, September 07, 2011 5:17:00 PM

    Hi AlexP said...

    You could be right about Uchitec. The RM1.20 level is a good support.

    ReplyDelete
  6. sookpengWednesday, September 07, 2011 6:57:00 PM

    Alex,
    What is your assesment of TDM ? It looks a fundamentally strong stock and price is going up. I analysed a number of stocks involved in oil palm plantation and noticed that some counters are really under valued when compared to their competitors - for example KFIMA, FIMACOR, KSENG, BLDPLNT. What is your view on this observation ?

    ReplyDelete
  7. Alex LuThursday, September 08, 2011 10:32:00 AM

    Hi sookpeng

    I agree with your assessment on TDM. I have been keeping an eye on this stock for sometime. Chartwise, TDM is trapped within an ascending triangle, with support at RM2.85 & resistance at RM3.20. If it can break above RM3.20, it could go to RM3.50-3.60 based on extrapolation. It may also re-test its all-time high of RM3.80 recorded in end 1993 or early 1994.

    Finally, I won't rule out the possibility of this company being privatized by State of Terengganu. With their huge state funds, they are busy buying over listed companies. TDM's major shareholders in April 2011 are Terengganu Incorporated Sdn. Bhd. [50.5%] and Perbadanan Memajukan Iktisad Negeri Terengganu [14.2%].

    ReplyDelete
  8. DJ MaxThursday, September 08, 2011 10:38:00 PM

    Bernas being actively traded lately.

    Here is my view on Bernas.
    http://bonescythe.blogspot.com/2011/09/bernas-food-for-thought-upcoming-star.html

    I think this could be the next TWS kind of stock.

    ReplyDelete
  9. David ChanFriday, September 09, 2011 1:25:00 AM

    Is MYEG consider as defensive stock?

    ReplyDelete
  10. Alex LuMonday, September 12, 2011 5:54:00 PM

    Hi Dav C

    I view MYEG as a defensive stock. It broke its horizontal support at RM0.70. It found some support at the psychological RM0.60 level & it has since rebounded to RM0.65. If the RM0.60 support failed, the next strong support is at RM0.55.

    The stock has an EPS of 3.8 sen for FY2011. Thus, it is now trading at a PE of 17 times. At that multiple, MYEG is not cheap.

    ReplyDelete