Thursday, March 05, 2015

SKPetro: A Selldown, A Buying Opportunity?

SKPetro took a sharp drop today on news that Mokhzani Mahathir and Yeow Kheng Chew have both resigned from the board of SapuraKencana Petroleum Bhd, with citing personal reasons (here).

I think the market is overreacting on this news. After all, we know that Mokhzani bought into Yinsoon in 2013 (here) and we have been expecting him to leave SKPetro some days despite his assurance that he would still keep 10%-stake in SKPetro (here).

Looking at the charts below, I believe that the stock should be well-supported at RM2.20-2.40. In fact, Mokhzani bought some shares in SKPetro in early December when the stock was at around RM2.40.


Chart 1: SKPetro's daily chart as at Mar 5, 2015_10.00am (Source: ShareInvestor.com)


Chart 2: SKPetro's weekly chart as at Mar 5, 2015_10.00am (Source: ShareInvestor.com)

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, SKPetro.
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3 comments:

  1. IvanThursday, March 05, 2015 11:40:00 AM

    Thanks for the post. There questions:
    a) Who is the buyer of 190mil shares that Mokhzani Mahathir sold?
    b) Why wanted resign at sensitive time, despite he sold the share?
    c) Sensitive time: 4Q2014 result announcement end of March- good vs BAD?

    ReplyDelete
  2. Alex LuThursday, March 05, 2015 12:19:00 PM

    Hi Ivan,

    I can't confirm Mokhzani has sold his 10%-stake. I can't be sure why he chose to resign at a sensitive time or any time for that matter.

    ReplyDelete
  3. IvanSaturday, March 07, 2015 11:56:00 AM

    Thanks for the sharing.

    ReplyDelete