Wednesday, December 18, 2013

CPO- resting at RM2500 support

CPO pulled back from the recent high of RM2700. It is now resting on the horizontal line RM2500. If it doesn't break below the RM2500 mark, the bullish stance for CPO and plantation stocks would remain. A break below the RM2500 mark would be negative for CPO and plantation stocks. Let's wait & see how CPO will fare over the next few days.

Chart: CPO's weekly chart as at Dec 17, 2013 (Source: ifs.marketcenter)


lai said...

Hi Alex,

Do you foresee Sealink doing what Tas share price has done, moving forward?


Alex Lu said...

Hi lai

Sealink is still in a downtrend line, with resistance at RM0.50. In addition, it is a loss-making company. Its losses average about RM10 million per annum.

Based on poor technical & fundamentals, I don't see a rally in Sealink without strong intervention.

lai said...

Thanks for the reply.

Btw, UliCorp has been showing some potential. Appreciate your view on its price objective.


Stanley said...

hi Alex, would like to seek your opinion on Unisem. Since USA market is on the mending, is it a good stock for long term investment?

Unknown said...

I personally didnt like Sealink.

Alex Lu said...

Hi lai

UliCorp may retest its 2011 high of RM1.40. It has just broken above the recent November high of RM1.10.

Alex Lu said...

hi Stanley

Unisem is still in a downtrend line with resistance at RM0.97-0.98. Horizontal support is at RM0.85.

The Philadelphia Semiconductor index (SOX) is on an uptrend after it broke above its triangle at 420 in 1Q2013. It is now at 520-530.

My guest is that you still need to be well-positioned in the semiconductor sector to benefit from the growth in that industry. MPI seems to have made the adjustment. Now it is Unisem's turn to make the change.

At RM0.85, I think Unisem may be a trading BUY.

wong said...

Hi bro Alex. Please comment on ASIAPAC (4057). I heard it will rise to 30sen soon. Thx

Unknown said...

Alex, whats your personal views on Hupseng on its split, bonues and price amendment proposal?

I'm pretty interested in getting some..

Alex Lu said...

Hi Eelyn Soon

Hupseng has gone up quite a bit over the past 2 years. The rise is partly driven by good fundamentals. Its EPS is about 30 sen and its dividend is about 33 sen. Thus its PE is 20x & DY is 5.4%.

However, at this juncture, we have to wonder whether the corporate exercise the last push.

Alex Lu said...

Hi wong

ASIAPAC may have broken above a 4-year symmetrical triangle at RM0.13 in April-May this year. After the past 6-7 months consolidating, it may rush up. I said, it may... Then again, it may not. I am not sure what's the angle on this stock.

lai said...

Hi Alex,

Latitud is flying since your last call. What happen lah?


Nevertheless, merry christmas and happy new year!

Alex Lu said...

Hi Lai,

On Latitud, I can only say that it broke above the high of RM1.75. That's a bullish breakout and it would be a trading BUY instead of a trading SELL.

This call reminded me of a few other negative or SELL calls that I made in the past. My readers actually jumped into those stocks and then asked me what to do. I wonder what happened to the call. Well I hope those who read my negative calls wrongly, did the same again in Latitud and hopefully recover their losses.

To them and to you, a Merry Christmas & a Happy New year.