A break above RM2-08 (Moving Average for 200 days) with strong volume next week will indicate a bullish trend. This may coincide with their next quarterly financial report due this month.
Do you mean directors selling their shares? There are many reasons for their disposal, for immediate cash returns, to increase free float of the shares, to increase institutional holdings (mutual / equity funds) and at times to funds or individuals for them to push the share price upwards. In the last scenario, we may see price moving upwards but the trend may reverse sharply once the support is no longer there. Having said that, I doubt CBIP upward price trend last Friday was due to this. Company is fundamentally strong and likely the price increase was due to funds buying for window dressing.
We should be expecting dividends this month. Bonus Issue ? That will be a pleasant surprise. The company traditionally has been rewarding shareholders with "something special" once every 2 years and the last Bonus Issue was in 2014. Maybe the company may distribute all the Treasury Shares from share buyback as Bonus Shares to the shareholders.
With the strengthening of USD, this is a good company to invest-in, on the assumption they continue to sign contracts in USD. Their plantation business is another good hedge for the strong USD - CBIP may consider to divest the plantations like how they did few years ago and distribute the cash to shareholders.
Heavy selling from foreign funds ? The selling however has been well absorbed with good support. Watch the breakout from the next level of resistance of RM2.00 and RM2.08. Still a good "buy and keep" from a potential capital gain and dividend yield perspective.
Waiting for dividend ex-date announcement. Should be soon. Recent selling (by foreign funds?) appears to have been well absorbed / supported. This counter needs some positive newsflow to push its price - corporate exercise, privatization, special dividends etc.
Tan Toh Fei. Just a bit patient, DIVIDEN is around the corner, may be some things more. A company with strong fundamental will eventually be able to shine. Just a matter of time. Accumulating slowly at cheap price.
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....
HuatAh88
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Posted by HuatAh88 > 2016-07-27 18:03 | Report Abuse
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