Category Archives: Trading/Services

Stock to Watch: Perdana [7108]

In this article, we shall take a look at Perdana Petroleum and explore how we can utilize all available past data in making price prediction. The focus would only be on the price prediction from 8th of March onward and we shall ignore all other entry and exit signals that had appeared in prior weeks.

perdana1

So what are the possibilities ahead? We can see the recent price development as a possible double top, which is not surprising given that the share price has rallied by more than 100% in the past 9 months. Alternatively, we can see the retracement in the end of January as a necessary correction for the share price to move higher. Which is more likely to happen?

Stock to Watch: Skpetro [5218]

Being Malaysia’s first full-fledged EPCIC (engineering, procurement, construction, installation & commissioning) player and the fifth largest EPCIC company by assets in the world, this giant deserves our attention. SapuraKencana Petroleum’s wide range of services, which is comparable to global players such as Technip, J.Ray McDermott and Saipem, and its strategic partnership with global oil and gas (O&G) players such as Seadrill, Subsea 7 and Quippo have enabled the company to gain a strong foothold in the international O&G market. It’s global presence, coupled with the liquidity and wavy movements of its shares, provides traders ample of opportunities to profit and thus we would definitely want to have this share in our watchlist. Let’s analyse the chart together.

skpetro

Airasia [5099]: Looking Into The Shareholdings of Institutional Funds

In my previous post, I explained why I was expecting Airasia’s share price to drop to the RM2.50 or RM2.30/ RM2.20 level before rebounding. The development of the price movement in the past 2 weeks, however, had caused the formation of an inverse-head-and-shoulder increasingly likely. The small reversal on the 8th of February with increased volume could be a signal for trend change. The support level at RM2.63 seems plausible since it was the lowest level being traded when the market tumbled in 2011 (as highlighted in the chart).

airasia general

But is it a confirmed trend change, or could it be just a bear rally? To answer this question, we need to look deeper into the activities of both the institutional funds that are involved in this counter.

Stock to Watch: Airasia [5099]

AffinInvestment Bank has been giving a buy call on Airasia with a price target of RM3.70 (an upside of 37% from yesterday’s closing) ever since its share price was hammered from its July top due to (1) possible increase in competition from Malindo Airways, a joint venture between Malaysia’s National Aerospace and Defence Industry and Indonesia’s Lion Air which is expected to start operating in May this year, and (2) adjustment of funds as Airasia seize to become one of our index constituents. In fact, most, if not all, of the research houses have price targets that are higher than yesterday’s closing price. So given the bullishness on Airasia – which comes mainly from an increase in its number of passengers carried and its growth capacity which translates to higher revenue - and its current favorable price, should we buy now?