Chart 1: Lonbisc's weekly chart as at Dec 2, 2011_10.30am (Source: Quickcharts)
From Chart 2 below, we can see that Lonbisc is still in an irregular downward channel, with resistance at RM1.20. Until it has broken above that level, Lonbisc is still in a downtrend. As such, this post is a short-term trading BUY call.
Chart 2: Lonbisc's monthly chart as at Dec 2, 2011_10.30am (Source: Quickcharts)
FYI, Lonbisc reported a lower net profit of RM4.0 million for 1Q2012 ended 30/9/2011. That is 7.6% below the net profit for QE30/9/2010. Its turnover increased by 10% from RM58 million to RM64 million. No reason was given for the diverging performance of the top-line & bottom-line for the company.
Finally, Lonbisc has also just announced that it is making a private placement of 10.253 million shares at RM1.00 each or 22% above the average price on the price-fixing date of Dec 1 (here). While some punters may think that the stock may be pushed up a bit to pacify the placees/buyers of these new shares, I am quite curious to know who would want to buy Lonbisc at a premium of 22%. Is there something in Lonbisc that we should look into. The last post I put up for Lonbisc was far from flattery (here).
2 comments:
Bro,
Good day to you.
I would like to seek your opinion if it's possible
I have been holding this stock for 2 years, average buying price is 0.90
I am new in stocks. No clue what to do now..is it worth to wait further ? or it is better to run now..
I read your previous posting, this company balance sheet doesnt look impressive..
Appreciate your kind comments
Thanks bro.
Have a nice day
Hi new-in-stock
I can only say that Lonbisc's immediate resistance is at RM1.00 & thereafter at RM1.10 & RM1.16. I cannot tell when the rally will terminate.
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