SCGM (SCGM MK) Technical BUY on pullback with +20.7% potential return Last price : RM1.53 (RM1.40~RM1.50) Target Price : RM1.64, RM1.72 Support : RM1.36 Stop-loss: RM1.35 BUY on pullback with a target price of RM1.72 with stop loss placed below RM1.35. Given our earlier BUY call on 31 Mar 14, SCGM has move higher and exceeded our target price of RM1.41. Despite the minor correction from the recent high of RM1.51 to the low of RM1.35, SCGM staged a strong rebound yesterday to correct toward a possible upward continuation. The emergence of fresh buying interest yesterday in the form of a higher trading volume of 4.1m shares (vs 20-day average of 1.3m) has proved to be a much needed catalyst in order to drive the share price higher. However, conservative investors may try to accumulate within the RM1.40-1.50 region amid a potential minor pullback over profittaking given the sharp rise yesterday. Upside target is pegged at the 1.61x Fibonacci extension level of RM1.72.
SCGM (SCGM MK) Technical BUY with +17.5% potential return Last price : RM1.54 Target Price : RM1.73, RM1.81 Support : RM1.43 Stop-loss: RM1.42 BUY with a target price of RM1.81 with stop loss placed below RM1.42. SCGM’s share price retraced from the recent high of RM1.61 before establishing a new support level at RM1.43. Given yesterday’s rebound off the support level on the back of a higher trading volume of 1.6m shares (vs 5-day average of 0.7m), we expect upward continuation hereafter. Additionally, the bullish crossover in Stochastic suggests rising momentum, which should help push the share price higher. Moving forward, we expect SCGM to climb along the price channel with medium-term upside target pegged at the 1.61x Fibonacci extension level of RM1.81.
Particulars of substantial Securities Holder Name DATO' SRI LEE HOCK SENG Address MLO 5278, Kelapa Sawit Kulai 81030 Johor. NRIC/Passport No/Company No. 501002-71-5129 Nationality/Country of incorporation Malaysian Descriptions (Class & nominal value) Ordinary shares of RM0.50 each Name & address of registered holder LEE HOCK SENG MLO 5278, Kelapa Sawit Kulai 81030 Johor. Details of changesCurrency: Malaysian Ringgit (MYR) Type of transaction Date of change No of securities Price Transacted (RM) Acquired 21/05/2014 40,000 1.681
Circumstances by reason of which change has occurred Acquisition of shares via open market Nature of interest Direct Direct (units) 8,393,141 Direct (%) 10.49 Indirect/deemed interest (units) 21,500,000 Indirect/deemed interest (%) 26.87 Total no of securities after change 29,893,141 Date of notice 22/05/2014
SCGM (SCGM MK) Take Profit. Potential downside of -15.4% Last price : RM1.65 Target Price : RM1.53, RM1.43 Resistance : RM1.72 Stop-loss: RM1.75 SELL with a target price of RM1.43 with stop loss placed above RM1.75. We issued three BUY calls on 31 Mar, 30 Apr and 9 May 14 at the price of RM1.12, RM1.45 and RM1.54 respectively. Following the current run-up, we opine that SCGM is losing its momentum given the dwindling trading volume in the past 10 days on the back of smaller price action which indicates a lack of strength in the background. Given the stochastic has formed a bearish crossover, suggesting growing selling pressure, we expect the share price to retrace lower and towards the 61.8% Fibonacci retracement level of RM1.43 over the near term. Taking profit at the current level will yield 51.8%, 17.2% and 10.4% returns on our previous call.
My opinion. Company with good fundamentals. Run up in price justified. However, at this point I think we're near a temporary top (current price RM1.78). I think we'll see a retracement. Long-term, I see price moving higher.
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....
MrGala
217 posts
Posted by MrGala > 2014-04-30 09:46 | Report Abuse
Pika Pika! The trading buy call was accurate, it really hit 1.54!!!!
Grrrr......