Wednesday, January 22, 2014

SAB- just broke above a strong resistance

Southern Acids Bhd ('SAB') is involved in oleo-chemicals, healthcare, plantations & milling, drybulk warehousing & conveyor. It is a profitable company with rising top-line & bottom-line.



Yesterday, SAB broke above its strong horizontal resistance at RM3.00. As the breakout is on thin volume, sustainability is an issue. Is this a real deal or is it a bull trap? If the rally can sustain, a rough projection would put the target at RM4.00.

Based on technical breakout, this stock may be a trading BUY.


Chart: SAB's weekly chart as at Jan 21, 2014 (Source: Tradesignum) 

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, SAB.
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6 comments:

  1. laiWednesday, January 22, 2014 12:29:00 PM

    Hi Alex,

    Some research house 'factored' in the land prices and mentioned it should worth this and that much. (Implying higher share prices)

    What is your opinion on this?

    ReplyDelete
  2. Big SeaWednesday, January 22, 2014 1:12:00 PM

    Alex,

    What is your opinion on CVIEW ?
    It has just released a spectacular quarterly result. I believe it is as good as KSL.

    ReplyDelete
  3. UnknownWednesday, January 22, 2014 5:28:00 PM

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    ReplyDelete
  4. Alex LuThursday, January 23, 2014 4:34:00 PM

    Hi lai,

    I guess if you tell them, they will just buy! Sometimes a stock is undervalued because investors did not know about its underlying assets or potential. Thus we cannot subscribe to the Efficient Market Theory wholeheartedly because 75% of our stocks are not covered by analysts.

    ReplyDelete
  5. Alex LuThursday, January 23, 2014 4:40:00 PM

    Hi Big Sea

    CVIEW has been reporting pretty good profit. Its FY2013 net profit was RM78 million- an increase of RM40 million from last year. This came form its two projects, Taman Nusa Sentral and Residence at The Peak.

    Its valuation is not demanding with trailing PER at 4.3x.

    Chartwise, it is in an uptrend. It may go even higher if it can convincingly charge thru the RM3.30 resistance.

    If you have the stock, you may want to hold onto it for now.

    ReplyDelete
  6. Big SeaTuesday, January 28, 2014 12:59:00 PM

    Alex,


    Thanks for your advise

    ReplyDelete