CapitaMalls Asia: Another failed reversal signal.

The Bullish Harami Cross failed as a reversal signal. Today, price gapped down at $1.73 and went on to touch an intra-day low of $1.69 before closing at $1.72. Very high volume accompanied this black candle day.

On the face of it, the entire picture looks very bearish but the formation of a black hammer suggests that the bulls are fighting back. In fact, the trade summary shows that sell downs and buy ups are almost evenly matched.

In an earlier blog post, I suggested that $1.70 is a strong support and that I would wait to see if this support level holds up before deciding whether to add to my long position. I have added to my long position at $1.71 today as the $1.70 level was tested and held up.

CapitaMall Trust flat; Iluma buy a long term story - UOB KayHian. At an NPI yield of 3.8%, does not look yield accretive to the portfolio NPI yield of 5.6% or the trading yield of 5.3%.
Monday, 28 February 2011

© 2011 - The Edge Singapore

Related post:
CapitaMalls Asia: Another reversal signal.

Golden Agriculture: Stellar FY2010 results.

In my past blog posts on Golden Agriculture, I said that this company is the most leveraged to CPO price and the very strong CPO price in recent months naturally means higher profits for the company. Golden Agriculture reported stellar results for FY2010 today:

Year on year:

1. Revenue increased 53%.

2. Core net profit increased 91% (excluding gain from changes in fair value of biological assets, foreign exchange loss and exceptional items).

3. Net debt/equity ratio at 0.1x.

4. Dividend of 0.77c per share proposed.

5. NAV per share is US56c.

6. EPS is US12c.


See full presentation here.

The after market sell down of almost 10m shares at 65c is somewhat disconcerting. This notwithstanding, the immediate resistance to any continuing upward movement in price is provided by the descending 20dMA which would approximate 68.5c tomorrow. I went in this morning with a small long position at 64c. Let us see how things turn out tomorrow.

Golden Agri Q4 net more than doubles to $1.49b. Its revenue surged 85% to US$1.19 billion from US$643 million in the year-ago period and core profit more than doubled to US$146 million.
Monday, 28 February 2011

© 2011 - The Edge Singapore