SILKHLD- poised for breakout?

There was a report that SILKHLD has been invited by Petronas to tender for the supply of medium & large offshore supply vessels (OSVs). The business, if materialized, will be undertaken by Jasa Merin (M) Sdn Bhd, the second largest OSVs owner in Malaysia. Petronas is reported to require 20 vessels in the upcoming tender.

In addition, SILKHLD is the owner of the 37-km Kajang SILK Highway, which is a loss-making due to financial charges and amortization. The company reported a net profit of RM4.4 million for FY2013 due to pre-tax profit contribution from the O&G segment of RM41.7 million.

If SILKHLD can surpass the horizontal line RM0.55, the stock could launch into an uptrend which could hit the resistance at RM0.80. Failure to break above this resistance will lead to correction back to RM0.50 & below that, RM0.45. As at 4:15pm, the stock was trading at RM0.545. Let's wait & see.


Chart 1: SILKHLD's weekly chart as at Jan 21, 2014 (Source: Tradesignum)


Chart 2: SILKHLD's monthly chart as at Jan 21, 2014 (Source: Yahoo Finance)

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, SILKHLD.