DRBHCOM – 1619: Breaking above RM1.30 again.
Chart 1: DRBHCOM – 1619 as at 01/12/2010.
As shown in chart 1, price of DRBHCOM once broke above the RM1.30 resistance on the 10th of October, but due to profit taking, price of DRBHCOM failed to stay above RM1.30. Fortunately, price pulled back to the 14, 21, 31 EMA level and rebounded, and consolidated then.
As indicated by A, after consolidating for about 2 weeks above the 14, 21, 31 EMA, price of DRBHCOM rallied again, and this time, breaking above the RM1.30. If price should remain supported by the 14, 21, 31 EMA, the uptrend shall continue, and it is a good idea to hold as long as the price is above the 14, 21, 31 EMA.
| 4 Q Rolling PER | 4 times | Dividend Yield | 2.90% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/03/2010 | 4 sen | 4.12% | 7.48% |
| 31/03/2009 | 15.83 sen | 22.94% | 10.83% |
| 31/03/2008 | 5 sen | 3.94% | 7.27% |
| 31/03/2007 | 3.5 sen | 1.79% | 3.27% |
| 31/03/2006 | 2 sen | 1.39% | -5.79% |
Table 1: DRBHCOM – 1619, yearly dividend, dividend yield, and net profit ratio.
Revision on last week's case study: MMCCorp – 2194: Still in downtrend channel.
Chart 2: MMCCorp – 2194 as at 01/12/2010.
As shown on chart 2, price of MMCCorp remains in its downtrend channel, with the T1 line being the dynamic resistance and the T2 line being the dynamic support. Meanwhile, the 14, 21, 31 EMA is also serving as the dynamic resistance.
As indicated by A, price of MMCCorp stopped at T2, and this implies that there is a chance of a technical rebound at this level. However, despite the chance of a rebound, as long as price is still below the T1 line or the 14, 21, 31 EMA, the technical outlook for MMCCorp is still on the negative side. It is usually a risky move to try to catch any rebound.
Technically, there are no ideal buy signal at the moment, until price could break away from the downtrend and form a higher-low.
| 4 Q Rolling PER | 24.19 times | Dividend Yield | 1.09% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 3 sen | 1.22% | 2.80% |
| 31/12/2008 | 2.5 sen | 2.40% | 6.17% |
| 31/12/2007 | 5 sen | 0.54% | 9.64% |
| 31/12/2006 | 9 sen | 2.23% | 13.74% |
| 31/12/2005 | 0.6 sen | 0.30% | 19.74% |
Table 2: MMCCorp – 2194, yearly dividend, dividend yield, and net profit ratio.
MUHIBAH – 5703: Rebounding from the dynamic support.
Chart 3: MUHIBAH – 5703 as at 01/12/2010.
As shown on chart 3, price of Muhibah was consolidating for about 2 weeks, and still supported by the 14, 21, 31 EMA, which is serving as a dynamic support. As for those who are already in position, it is fine to hold as long as price is supported by the 14, 21, 31 EMA. Provided that you should gradually lift your trailing stop level (profit taking or cut loss level) according to the 14, 21, 31 EMA.
As for those who are looking for an entry, it is crucial to only buy when price started rising above the 14, 21, 31 EMA, and apply the 14, 21, 31 EMA as a trailing top after buying.
Despite technically, the immediate technical outlook remains positive, it requires more volume to push price higher or even just to sustain the uptrend. If volume shall remains low, chances of a rally is also low, and the RM1.40 will likely be a strong resistance.
| 4 Q Rolling PER | 27.74 times | Dividend Yield | 1.94% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 2.5 sen | 2.72% | 0.64% |
| 31/12/2008 | 2.5 sen | 2.53% | 1.02% |
| 31/12/2007 | 4.50 sen | 1.20% | 4.94% |
| 31/12/2006 | 7.50 sen | 2.88% | 3.06% |
| 31/12/2005 | 4.00 sen | 5.76% | 2.68% |
Table 3: MUHIBAH – 5703, yearly dividend, dividend yield, and net profit ratio.
Conclusion:
Many individual counters are having technical correction, and the overall market direction is now somewhat unclear. However, with the KLCI returning to above the 14, 21, 31 EMA, the technical picture overall is still looking positive. As long as a sound trading plan is in place, and one is following his own trading plan, the risk of trading is still manageable.
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