Monday, June 18, 2012

Waseong EOD 18/6/12



Will it rebound from its historical low and stay above 1.84 - 1.85 level, also the double bottom which shown on the chart above?

There were huge selling seen yesterday, also drastic price drop since end May until today there was somehow a slight rebound where it closed @ 1.84, the previous lows prices.

Wah Seong said last week that it was positive on its financial year ending Dec 31 2012 outlook with its current order book of RM 1.2billion, comprising RM 727 mil from O&G segment, RM243 mil from renewable energy segment and RM182 mil from the industrial trading and services segment.

And there has been consistent purchases of shares into its treasury since two months back, ranging from RM1.81 - 2.01. 

Any idea whether would it be good for a longer term investment? Very much appreciated if there are experienced traders, who are willing to share your views as i'm still learning and would like to gain some knowledges here. 
Thank you. 

10 comments:

  1. If you are into longer term, then switch the timeframe to Weekly Chart. You ll see the picture clearer.

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  2. Okay, thanks. But this counter as i have been monitoring the volume is pretty low too.

    What would your view be for its present chart?

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  3. Speculative counter which normal circumstances see little play as it is considered 2nd tier or maybe 3rd.
    During GEs, it will usually see a lot of plays, though.
    Perhaps this chart will show my opinion on it.
    http://postimage.org/image/ifsvl7mft/

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  4. It's coming to GE soon, probably like u say, we would be able to see some plays here?

    Okay, will check out on your chart! Thanks.

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  5. Possibly. GE, Budget, UMNO meetings. These events tend to cause this counter have more plays.

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  6. Wouldn't the GLC's / index counters be likely having more plays instead?

    I have not much idea on Wah Seong's background.

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  7. You re right on GLC and Index counters of course.
    Wah Seong is a 2nd/3rd liner and historically during these events there are some plays on it. At times, its movements are more than most of the index/GLC counters.
    That said, GLC and Index counters see more plays even at normal non-eventful days.
    Basically, difference of active and inactive counters.

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  8. Oh okay.

    Wah Seong had moved up already with the news from the winning of 26.9% bid of equity interest in Petra Energy.

    News said Shorefield Resources Sdn Bhd is the largest shareholder of 27.3& stake and Wah Seong would emerge as the second largest, if Perdana Petroleum's share sale went through.

    How do i relate all these? A bit confused though. Because i do not know if its considered as a good news not? As rumoured that the offering price @ 1.70 where by Petra closed @ 1.43 as of friday. Wouldn't this be a good news for Petra Energy instead of Wah Seong?

    However, i have no idea about Petra Energy biz and fa. So...... ??? :-/

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  9. Am i confusing myself with the news? LOL..

    But do i not need to look at news? Hmm...

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  10. I dont like news stuff because its yesterday's news. With news, we re always one step behind.
    Furthermore, I suspect there is a conspiracy that all these news are hyped up to con investors. I prefer charts because it does not lie. Unless I can get insider information then I like but then, it ll be illegal insider trading or it ll be just a rumor of which, at times, there is no way to verify.
    But if you insist, then they purchased some shares in Petra. So Petra Energy is into O&G services.
    1. Then we ll need to assess its political link (to get projects from Petronas).
    2. We ll also need to consider Crude Oil prices (if it can go higher then there ll be more drilling activities and hence higher chances for Petra to get projects).
    3. Potential cyclical/thematic play of all O&G counters

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