The price of Kimlun adjusted today because of the entitlement. Uptrend still intact. Expect more consolidation towards support at $2.15 in near term as indicators show weakness. The entitlement date is on 29/7/2013.
Young man FD, Grandma monitoring LBS and MNRB. MNRB has very good PE, P/B, P/C and P//S. LBS is marginal in this area with better indicator in PE at 10.8 P/S at 1.06. Both are good, just need to monitor the timing of RSI and the avg movement %
Kimlun may form "An Abaondon baby Bottom" which if confirmed is normally a trend reversal. Do observe the next few days movement, if tomorrow rebound with a white candle and next 2 days can move above $2.12 it signals BUY. If not may drop further to next support at $1.96 and strong support at $1.90.
As suggested KimLun rebounded to $2.08 before closing at $2.05. It did not open up with a "Gap" as suggested but today close is a good sign for further upward movement. A close above immediate resistant of $2.12 tomorrow suggests Trend reversal to scale next resistances of $2.20/$2.22. Immediate support is adjusted to $2.00. (I bought in KimLun today at $2.02/$2.03).
Kimlun is tarding between $2.00 to $2.08. It needs to close above $2.12 (above 30 days MA) to stand any chance of further advancement. I will cut losses if break below the support of $1.90.
Grandma thinks that a good Net Profit in the coming result will support the P/S which is indicating a buy currently together with the PE and PC. This is especially true because the last quarter reported higher Revenue but lower net profit.
The lower net profit for Q1 was because of a start up cost for concrete production in Seremban. With tht out of the way, the Q2 result for the bottom line will be much anticipated. Grandma expecting at least a 25% to 30% of annual forecast If it hits 30%, it will cover the earlier shortcoming at the profit side.,
Good chance to see ROA improve. Construction business Icahn be erratic and ROA can be badly affected. Grandma would like to see better ROE and TOPline since nature of a construction, margi, asset and receivables turnover are key.
Grandma like the intent here shown in opening. Buyer has intent but market has other idea. In tis type of cases, watch the share when the situation is recovering.
That's the nature of construction as mentioned earlier. Their Avg Net Profit is at 5.3% and OP at 7.2% . Overall use of their asset is par above but can still push with ROE at 18%. Grandma feel the company has intensity but has a lot of pressure being construction and not an overall construction services to include PD.
As long as KLCI below the 174x and noninitiative from. 1719 to rise, the shares will be going down south. The initiative has got to be solid and passing at least 1735 to be convincing. Grandma can rest until 3.30 at this rate of action
Kimlun's foreign buy in exposure as Grandma can see is only NBIM ( Norges Bank Investment Management). It is a Norwegian pension fund much like EPF. This may not be much of a concern yet firstly Grandma think they will continue to monitor the improvement base on the tapering in US and Secondly, Europe is still not out of the crisis yet.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
sean
312 posts
Posted by sean > 2013-07-25 10:03 | Report Abuse
down first then it will up back