Disclaimer


The contents in this blog is solely for information purposes only. All expressed views and technical analysis in this blog do not constitute buy or sell recommendations. Readers should do their own research and due diligence as well as consult with an investment professional before making any investment decisions. The author will not be held liable nor accountable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

Sunday 22 March 2015

SENDAI (EVERSENDAI CORPORATION BHD)

Periodically,  TCB will pick a stock we may like to trade short term.  So, this week, TCB have selected the stock, SENDAI as our *Stock In Focus (SIF)*.  Please do not take this as a buy signal as our TA reading for these stocks are for sharing purpose only.  Do calculate your own risk/reward ratio if you decided to trade this counter. 



Background Information


Eversendai Corporation Berhad, an investment holding company, provides steel fabrication, structural design, shop drawing, and steel erection services. The company is involved in the structural steel design, engineering, supply, and fabrication; structural steel erection services for high rise buildings, shopping malls/ retail centres, stadiums, airports, long span roof structures, industrial, power, and petrochemical plants, as well as factories, warehouses, and bridges; and installation of mechanical equipment, pressure parts, pipes ducts, clads, and control systems for power plants. It also provides procurement, fabrication, and installation of process modules and equipment for oil and gas production; planning, procurement, HSC and execution, and installation of various mechanical works, such as pressure parts, non-pressure parts, piping, heat treatment, equipment, ducting, insulation, electrical, painting, and pre-commissioning works; and undertakes contract specialising in fabrication projects consisting of medium sized turnkey and large EPC projects. In addition, the company is engaged in the provision of management services; civil engineering and general contracting services; and steel fabrication and painting services. It operates in Malaysia, Singapore, Thailand, the Philippines, Indonesia, Hong Kong, Oman, Saudi Arabia, Bahrain, Qatar, India, and the United Arab Emirates. The company was founded in 1982 and is based in Rawang, Malaysia.



Technical Analysis


A potential awakening of a beaten down stock could be an apt description of Sendai's technical chart. It's stock price peaked at 1.74 on 17/7/2003 and then took an ensuing downward journey that took it all the way down to 0.485, a journey that lasted about 20 months. 

Currently, it has all the trappings of a potential classic Double Bottom Reversal, a bullish reversal pattern, as it fulfills the critical criteria associated with it.  For starters, there was a significant downtrend for it to reverse.  Crucially, there were evidence of an accelerating buying pressure and volume off its 2nd trough. To add to it, the peak after the 1st trough was significant which carries the implication of a large potential advance upon successful completion of the Reversal.  Hence, a break above the critical resistance of 0.78 will complete the Double Bottom Reversal and could signal a potential strong bullish run.




Weekly Chart

On the weekly chart, it broke out from its downtrend line during the week of 9/3/2015 with good volume giving ammunition to the validity of its price reversal.  In the mid-term, it has an immediate support at 0.705 with the cushion of a strong support at 0.66.  The resistance at 0.78 is a key resistance that must be taken out convincingly in order to complete the Double Bottom Reversal.  A successful completion of the reversal would yield a target price of 1.07.  A stop loss is recommended upon violation of 0.66 for mid-term traders.


Daily Chart

Based on the daily chart, it hit a high of 0.835 on 17/3/2015 but failed to clear it.  Instead, it closed the session with a dark cloud, a precursor to an ensuing period of consolidation. It is currently consolidating sideways and thus far, is on the verge of overcoming the 0.78 resistance convincingly.  Successfully clearing the dark cloud top of 0.835 will pave the way for it to scale towards its target prices.  It has an immediate support at 0.76 and further support levels can be found at 0.735 and 0.715 respectively.  A successful completion of the Double Bottom Reversal would carry Sendai to its target prices of TP1 = 0.85, TP2 = 0.90, TP3 = 0.99, and TP4 = 1.07. For short term traders, a stop loss is recommended should 0.715 be violated depending on your risk profile.




Key Notes

1.  On 26th Feb 2015, the company announced its unaudited 4th Quarter results of 2014. The Group reported a revenue and profit after tax of RM308.5 million and RM16.4 million respectively for the quarter ended 31 Dec 2014, as compared to the corresponding quarter last year of RM238.3 million and a loss of RM9.3 million. The improved performance of the group is due to the positive contribution from its new Oil & Gas division.

The Group’s revenue continued to be dominated by its operations in the Middle East, which has accounted for 67% of the Group’s revenue during the current financial period. 

(Ref:  http://www.bursamalaysia.com/market/listed-companies/company-announcements/1886933)


2.  Some of the Group's recent announcements include a RM44 mil contract secured in Dubai on 5th Jan 2015, a RM184 mil project in India on 26th Jan 2015, a RM120 mil contract in Malaysia on 9th Feb 2015, a RM269.2 mil project in Qatar on 2 Mar 2015 and two contracts worth RM246 mil in Saudi Arabia on 16 Mar 2015.











Wednesday 11 March 2015

EG INDUSTRIES BHD

Periodically,  TCB will pick a stock we may like to trade short term.  So, this week, TCB have selected the stock, EG as our *Stock In Focus (SIF)*.  Please do not take this as a buy signal as our TA reading for these stocks are for sharing purpose only.  Do calculate your own risk/reward ratio if you decided to trade this counter. 




Background Information


EG Industries Berhad ("EG") was first listed on the KLSE in 1993 under the name of Dai-Ichi Industries BerhadToday, EG as an investment holding company, operates through its subsidiaries that include SMT Technologies Sdn Bhd, which is engaged in the provision of electronic manufacturing services for computer peripherals, telecommunication and consumer electronic/electrical products industries ; Mastimber Industries Sdn Bhd, which is engaged in the manufacture and sale of two layer solid wood parquet flooring ; EG Wireless Sdn Bhd, which is an original equipment manufacturer/original design manufacturer (OEM/ODM) in complete box built products, and SMT Industries Co Ltd, which is engaged in the provision of electronic manufacturing services (EMS) for computer peripherals, telecommunication and consumer electronic/electrical, and automotive industrial products industries. It has operations in Malaysia, Singapore, Europe, the United States, Korea and Thailand.

After the announcement of its last quarter results ended 31st Dec 2014 on 26th Feb 2015, EG began to attract attention with trading volume reaching a high of 7.7 mil shares traded on 27th Feb 2015.



Technical Analysis

EG is currently bullish after hitting a bottom at 0.455 which marked the end of its correction phase.



--Weekly Chart of EG--

The weekly chart's formation of the 3 white soldiers confirms the bullishness of EG. It is expected to break above RM 0.865 decisively with volume which should see it moving towards its 1st resistance of RM 0.90 and subsequently onward to challenge its strong resistance at RM 0.94. It should enjoy an immediate support at RM 0.78.  A successful take out of the resistance at RM 0.94 will see it trend towards its 1st target price of RM 1.00 before moving towards a final target of RM 1.11.




--Daily Chart of EG--

On the daily chart, after closing the past two days with a doji pattern, it closed with a bullish engulfing pattern on 11/3 reaffirming its bullish trend.  It has been consolidating after attempting to break the high of 0.855 on 5/3.  It tested the RM 0.865 resistance on 11/3 but ended up closing at RM 0.85 mainly due to heavy T4 selling pressures. It is poised to further its uptrend and It is expected to break RM 0.865 anytime soon to move towards its target prices of RM 1.00 and RM 1.11 respectively. Stop-loss if RM 0.775 is violated.





Key notes

EG’s latest quarterly report for financial period ended 31/12/2014 reflected a very much improved financial performance.  (http://www.bursamalaysia.com/market/listed-companies/company-announcements/1886685)
















Sunday 8 March 2015

BDB (BINA DARULAMAN BHD)

Periodically,  TCB will pick a stock we may like to trade short term.  So, this week, TCB have selected the stock, BDB as our *Stock In Focus (SIF)*.  Please do not take this as a buy signal as our TA reading for these stocks are for sharing purpose only.  Do calculate your own risk/reward ratio if you decided to trade this counter. 




--Weekly Chart of BDB--

In recent weeks, BDB attracted much interest that resulted in increased trading volume. Currently, it is retesting it's resistance level at 0.96 and should enjoy immediate support at 0.82 and 0.71 respectively. It needs to take out the Gap resistance at 0.96 and 0.995/1.00, where 1.00 is also the psychological resistance price. It's current trading volume is at a good level that primes it for a rounding bottom breakout if it closes above 0.96. The mid-term target prices (TP) are 1.21 and 1.28. Stop-loss if 0.71 is violated. 



--Daily Chart of BDB--

After a drastic fall in late 2014, it hits a bottom at 0.71.  BDB is now ready to enter stage 2 when the gap of 0.96 and 0.995/1.00 is closed. It has a good support level at 0.885/0.88 and also at the next support level of 0.845. Gap resistance is at 0.96 and 0.995/1.00. If the support level at 0.885/0.88 managed to hold, it will close the gap and surge further up north in the near future. TPs are estimated to be 1.10 and 1.14. Stop-loss if 0.845 is violated. 





Key Notes

1.   BDB's latest quarterly report registered an improved financial performance. (Ref: http://www.bursamalaysia.com/market/listed-companies/company-announcements/1885581)

2.   BDB is strengthening its property activities in Kedah via the proposed acquisition of several parcels of land to increase its land bank for property development. (http://www.bursamalaysia.com/market/listed-companies/company-announcements/1862337)