CapitaMalls Asia: Another up day.

CapitaMalls Asia staged another up day on similar volume as the prior session.  I queued overnight to reduce exposure further at $2.12, not confident that this level would be taken out.  I also queued to sell at $2.17, two bids below the next resistance which was identified at $2.19, if $2.12 should be taken out.  Of course, both sell orders were done. I have a small position left. 

What will I do next? If the price moves higher to test the higher resistance level at $2.23, I would exit totally. If it does not and shows signs of a slide back downwards, I would also exit totally as it might go on to retest the recent low. The recent increase in price on rather low volumes lacks conviction and does not bode well for long only investors. I would watch out for the counter to form a base, lacking which, it should form a higher low, before I consider going long again.

This is the second counter I have cut loss on this year after China Hongxing.  In a way, it is good to lose some money after a long winning streak as it reminds me that I am human and that I make mistakes too.  Must not become overly confident which might really sink me one day.

I read somewhere that it is normal to give back some of our gains to the market when the trend turns.  The person being interviewed said to give back 25% of our gains is acceptable. Personally, I think that is too much. ;-p

Courage Marine: 1Q 2010 results.

Courage Marine presented its 1Q 2010 results today with the BDI at an auspicious number, 3,888! A happy coincidence! 

Quarter on quarter, operationally, its revenue improved 12.9% and gross profit margin improved from 19.1% to 27.8%.  Its balance sheet remains very strong as it retains a nett cash position.  Cash flow from operations in 1Q 2010 was US$5.3m.

Technically, Courage Marine's chart looks weak.  However, there is no obvious selling down of the stock.  This is confirmed by the OBV which is flat. MFI is in the oversold region and price is currently below all the daily MAs.  If the price action does not recapture supports, the malaise could continue and price could drift lower.

I have a list of companies and REITs which I would like to buy on any near term weakness in the next few months. Courage Marine is one of them.

Read press release here.

Related post:
Courage Marine: Riding the waves of recovery.

Charts in brief: 13 May 10.

CapitaMalls Asia:  MFI continues to rise from the oversold region.  MACD turned up towards the signal line. OBV has turned up. Things are looking up, it seems.  Then, we see the white candle with a long wick on top.  This is a weak white candle. Volume has expanded but not significantly so on an up day.

$2.12 remains a strong resistance as market participants remember this as the support that failed not so long ago on 4 May.  The descending 20dMA is, coincidentally, at $2.12 as well which adds to the downward pressure. 

I queued overnight to reduce exposure at 2 bids below resistance at $2.10, cutting losses in the process.  I am not confident that $2.12 could be taken out but if it does get taken out, the next resistance is at $2.19, the bottom of the base formation earlier in February.

Golden Agriculture: CPO's price declined again today, continuing its downtrend. For Golden Agriculture, it is quite obvious that 55.5c continues to be a formidable resistance. That the decline has halted is evident as the MACD has flattened. The OBV has flattened too.  Price seems to be moving sideways within a range for now. 53c to 55.5c is my observation.  The near term downtrend is still intact.

Hyflux Water Trust achieves DPU of 1.16 cents for 1Q
Thursday, 13 May 2010

© 2010 - The Edge Singapore

Related post:
Charts in brief: 12 May 10.

LMIR: 1Q 2010 results.

For me, the important numbers are the following:

1. LMIR is trading at a huge 43% discount to NAV 84c.
2. Gearing is very low at 10%.
3. Annualised yield is 10% at the unit price of 48c.

Despite the very strong fundamentals, LMIR's unit price has been languishing.

Technically weak, it has closed below the 200dMA support today after forming lower highs since the start of the year. The next support is at 47c. If this breaks, price could fall to as low as 44c, I reckon.

MFI has been forming lower highs, suggesting a lack of positive buying momentum, making a further weakening in price for this REIT probable. So? I would definitely accumulate on weakness if it does come to that. 44c would be a bargain!

See presentation slides here.

Related post:
LMIR: More units at 10% yield.