Wednesday, March 04, 2015

Carlsbg: Leading the Way!

In April 2014, I posted about Carlsbg's sharp drop and its possible recovery (here). Nearly a year later, we are finally seeing Carlsbg's recovery. In the past 4 weeks, the stock broke above 3 horizontal resistance at RM12.00, RM12.50 & RM13.00. Its next resistance is at RM13.70.


Chart 1: Carlsbg's weekly chart as at Mar 4, 2015_3.00pm (Source: ShareInvestor.com)

The other 2 stocks mentioned in that earlier post were GAB and Orient. GAB had a decent rally in early February to test the horizontal resistance at RM14.00. Yesterday, it broke above the RM14.00 and it continues to rally today.


Chart 2: GAB's weekly chart as at Mar 4, 2015_3.00pm (Source: ShareInvestor.com)

Unlike Carlsbg & GAB, Orient has yet to put in a decent recovery. Orient is a conglomerate with exposure in automotive industry & plantation sector while Carlsbg & GAB are consumer stocks involved in the brewery business.


Chart 3: Orient's weekly chart as at Mar 4, 2015_3.00pm (Source: ShareInvestor.com)

Based on the above breakout, Carlsbg & GAB are expected to continue to trend higher.

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, Carlsbg, GAB & Orient.
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3 comments:

  1. laiWednesday, March 04, 2015 11:26:00 PM

    Hi Alex,

    May I have your view on EG INDUSTRIES. It's TA AND FA looks ok.

    Thank you.

    ReplyDelete
  2. Alex LuThursday, March 05, 2015 12:17:00 PM

    Hi lai

    EG Industries looks very interesting. Here are the reasons:
    1. It has a new substantial shareholder, Jubilee Industries Holdings Ltd. This company is listed on the Catalyst Board on SGX. Jubilee holds 26%-stake in EG Industries.

    2. Jubilee acquired 19.504 million shares and 3.704 million warrants of EG Industries for RM21 million on July 10, 2014. This would translate to a price of RM1.05 per share (assuming a price of RM0.10 per warrant).

    3. Since Jubilee's entrance into EG Industries in middle of last year, the latter's bottom-line soared. Its last 2 quarters' NP margin is about 3.9% as compared to less than 1% previously.

    4. EG Industries' EPS for 1H2015 is about 24 sen. Thus annualized EPS for FY2015 could be 48 sen. This means the PER would be 1.7x!!

    5. The CEO has indicated that the company plans to expand and to carry out a RI for fund-raising. The share price is likely to be play up to support a RI.

    Based on very attractive valuation, EG Industries looks like a good BUY.

    Good luck.

    ReplyDelete
  3. laiThursday, March 05, 2015 4:41:00 PM

    Thanks Alex for the insight. This new substantial shareholder looks promising. The same can be said of Borneo oil?

    Much thanks

    ReplyDelete