The overbought condition in the unique boutique market resolved itself in a sideways consolidation. For a trade, I will be buying the stock when it breaks up through $2.20 resistance. I would not be buying this stock until it gets back above $1.00. For buying it, an appropriate amount is required to be invested. You may think that the stocks you hold are fundamentally strong or undervalued, but they are usually not exempted from the drastic fall in share price in a bear market! US stocks are on course to close lower for a third consecutive week. Since the 13th general election until 21st May, Bursa Malaysia index KLCI has rose 5.5% from 1694.77 to 1787.3. Most of the stocks register massive gain within this 2 weeks, especially the property stocks. If the gov lose, KLCI may also lose due to panic selling of index stocks which are almost all governement-linked. However, Crescendo, as well as EUPE which has a construction arm, are not a pure property player.
The champion is Crescendo, which jumped 56% during this period. Thus, the real property champion should be Hua Yang, followed by Glomac and Tambun Indah. If this price and volume can sustain until the market close, then technically speaking, Tambun is well position to test the next resistant at RM1. At the time this post is written, Tambun Indah’s share price has just surged to 90sen, well above its resistant of 87sen with a high volume. Tambun is one of those small stock that I think should be able to resist the wind of change, as it is fundamentally strong. Non-index-bound small counters may also be affected by the big market. Locally, while 20sen increase in RON95 petrol price may reduce some financial burden faced by the government, it surely will increase the cost of living and affect investors’ sentiment. While I would have preferred to see more asset managers participating in this offering, it is also a good sign to see strategic investors like Perfect World and iQIYI investing in this Company. Added to this is the prospect one day and it will happen, FPH will have a bad year. Now even though most share price slowly crawl upwards, I think it is unlikely to reach previous peak within this year.