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Marco Polo Marine is a turnaround story which is simply at the right place and at the right time. Of course, they have also positioned themselves to ride the next wave up. In the shorter term, however, we could see some weakness in its share price.
A retracement could see share price declining to the top of the recent base formation at 37c, give or take 0.5c, where we should see very strong buying interest. The formation of a white candlestick with a very long upper wick on the back of heavily increased volume in the last week suggests that a pull back is a strong possibility.
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| Weekly chart. |
I would definitely buy more if support at 37c should be tested as the reaction to Marco Polo Marine's much improved numbers including the listing of its subsidiary in Jakarta seemed relatively muted. Marco Polo Marine's valuation is inexpensive compared to peers even at the high of 43c a share last week.
When Marco Polo Marine's numbers continue to improve and good news continue to be announced, more market participants will become believers and buy the stock. That is when we would see a truly breathtaking winning streak.
Related post:
Marco Polo Marine: Longer term buy on weakness.
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16 comments:
AK, i read the latest annual report MPM. the funds are already in this counter. But beat me why it didnt run up. there is a house call to buy with tp 53 cts on it.
Hi seefei,
OSK DMG estimates that the stock will double in value in the next 2 to 3 years. ;)
Anyway, we cannot second guess Mr. Market. The stock will rise in price when Mr. Market thinks the time is right.
hi AK, i able to grab some last friday @ 0.405. intend to keep for long term:)
Hi yeh,
It could work out nicely as a hedge since 40c seems to be the immediate support. :)
Hi AK
For long term do we need to have a stop loss?
Hi Tom,
Conventional wisdom would dictate that we have stop losses.
However, in cases where there are big whipsaws, people with stop losses could get whipsawed out of their positions. ;)
It is a very personal decision, ultimately.
Personally, I don't have such a practice. :)
my portfolio down 2% :(..wondering should i cut loss:(
Hi yeh,
You have to know what you want from Mr. Market. Then, decide on your strategy. If you are trading, then, you might want to have stop loss orders.
Setting a stop-loss order for 10% below the price you paid for the stock will limit your loss to 10%. This strategy allows investors to determine their loss limit in advance, preventing emotional decision-making. Source: Investopedia.
Set the stop loss orders too tight and you run the risk of being whipsawed out of the market. 10% is not a hard and fast number.
When you know what you want from Mr. Market, you will know what approach to use. Then, your mind will be calm no matter the circumstances.
You might want to read books on FA and TA, if you have not done so yet. Check my right sidebar for some books I recommended. :)
haha, me not too expert about TA, but me more in Fundatemental Analysis.
just a bit worried, because there are too many penny stock in my portfolio:( .
hahaha.
Hi yeh,
If you are big on FA, then, you should be like Warren Buffet when prices are falling: happy. :)
yes. i only invest my 10% of capital , still have cash 90% not invested yet. waiting for gd chance then do investment.
Hi yeh,
There you go. ;)
Sounds like you have a plan. Good on you. :)
AK:
Thanks to you I have suddenly Marco Polo Marine on my watchlist.. ;-)
I had NOL on my watchlist at some point, but took it off, as it was just going down more.. Now I'm thinking of moving some of my S-REIT money into lagging and cyclical sectors, that has put marine stocks back on my radar screen (the other sector being commodities).
One question to you: Did you have any good infos on the overall sector? It's not exactly an industry I understand, so just comparing PE's might be too easy. So I was wondering if you had any good reports or reading, like a Shipping and Marine 101, to recommend..
Thanks!
Jay
Hi Jay,
Shipping and marine businesses are not easy to understand. Well, at least I don't think they are. There are many more variables compared to real estate and REITs and I have lost more than made in my previous investments. :(
With Marco Polo Marine, I might have found a company I can understand more easily. Of course, its business is totally different from NOL's.
You might want to visit Maybank KimEng's website. They did a good write up on the industry earlier this month. :)
AK,today marco polo gap down.
time to average?
Hi yeh,
Haha.. This type of questions, I never will answer. Your call. ;)
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