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| Monday, April 23, 2007 |
| 23rd April 2007 |
Well well, today is a weird day. Most of my stocks hit a high which is a new high, but then closes much lower.
CAO
- Going through a consolidation phase in my opinion
- SAR shows reversal in trend (secondary)
- MACD diverge downwards
- RSI still healthy though
- Volume traded decreases, which might be an indication that the accumulation is coming to an end
- Verdict: Still vested and nothing to worry about
Golden Agri
- SAR close to reversal
- MACD going to touch and diverge soon
- RSI is still too high, so its expected that it will fall
- Fall in volume today might be a sign of accumulation
- Verdict: Vested however, will keep close tabs on it
Ho Bee
- SAR close to reversing back to uptrend
- MACD still diverging downwards
- RSI goes below 50% indicating a slightly weak market
- Verdict: Vested, keep close tabs on it, might increase stake on it depending on its strength of the trend
Olam
- Very resilient, seems close to reversing, but still doing ok
- Should be reversing downwards soon
- Verdict: Vested, and nothing much to worry about
Raffles Edu
- Going down at the moment
- All indicators pointing south
- EMA cut will soon trigger the sales of this equity
- Verdict: Might not be vested by Wednesday. Much is dependent on tomorrow's result.
Rotary
- Might be going up again.
- Nothing has changed much since last trading day
- Verdict: Vested and will be patientLabels: ChinaAviationOil, GoldenAgri, HoBee, Olam, RafflesEdu, Rotary |
posted by Nenix @ 9:28 PM   |
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| 1 Comments: |
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Hi Nenix,
OK, call me a TA idiot, but I never understood terms like RSI, MACD and etc. All I know is how good a business is and how it can contribute to shareholder value.
I will comment on Olam and Rotary, as I do not have info on the rest. Olam seems to be trying to swallow more than it can chew; I was surprised that acceptance level for Queensland Cotton was a mere 11% (as reported by Reuters), and now they are trying to acquire a peanut company. Can they actually finance these acquisitions ? Are they using cash, equity or debt ? That is the pertinent question for investors. Although I have said it's a great company, I admit they look like they may possibly suffer from indigestion if they are too aggressive. Also, look out for gearing issues and watch their net profit margin.
As for Rotary, they have secured good contracts in recent months. However, the share price has also run up quite a bit and I think as a conscientious investor, you would want to do a valuation of Rotary based on earnings projection and see if you are paying a fair price for this company. The Annual Report will also help to elucidate strategies which Management plans to take to grow the company. I recommend reading more and understanding about this company.
To summarize, I am really not a TA person and the charts look like nice lines to me (and that's all !). All I know is that earnings drive the price, not the other way round. If you wish to trade, then you should be mindful too of the fundamentals, as fundamentals will win out in the long run.
Good luck !
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| Fund launchprice on 1st August 2006= $1
Target for 2007 = Beat STI index
Current price of NDF as of 1st Oct 2007 = $1.58
Current price of STI as of 1st Oct 2007 = $1.54
Difference with STI index is 0.04
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Hi Nenix,
OK, call me a TA idiot, but I never understood terms like RSI, MACD and etc. All I know is how good a business is and how it can contribute to shareholder value.
I will comment on Olam and Rotary, as I do not have info on the rest. Olam seems to be trying to swallow more than it can chew; I was surprised that acceptance level for Queensland Cotton was a mere 11% (as reported by Reuters), and now they are trying to acquire a peanut company. Can they actually finance these acquisitions ? Are they using cash, equity or debt ? That is the pertinent question for investors. Although I have said it's a great company, I admit they look like they may possibly suffer from indigestion if they are too aggressive. Also, look out for gearing issues and watch their net profit margin.
As for Rotary, they have secured good contracts in recent months. However, the share price has also run up quite a bit and I think as a conscientious investor, you would want to do a valuation of Rotary based on earnings projection and see if you are paying a fair price for this company. The Annual Report will also help to elucidate strategies which Management plans to take to grow the company. I recommend reading more and understanding about this company.
To summarize, I am really not a TA person and the charts look like nice lines to me (and that's all !). All I know is that earnings drive the price, not the other way round. If you wish to trade, then you should be mindful too of the fundamentals, as fundamentals will win out in the long run.
Good luck !