PBBank – 1295: All time new high
Chart 1: PBBank – 1295 (13/03/2009～15/09/2010) Weekly Chart.
As shown on the chart above, the 14, 21, 31 Weekly EMA (Exponential Moving Average) is still serving as the long term dynamic support for PBBank share price, since March of 2009.
Since PBBank is a high dividend payout stock, coupled with its consistent good earnings, it is usually a favorite pick of Fund Managers as well as long term investors. In other words, if the broad market should remain bullish, price trend of Pbbank is likely to be positive as well.
Evidence of chart 1 shows that price of Pbbank has never broken below the 14, 21, 31 Weekly EMA dynamic support, thus this suggests that the long term uptrend remains intact. Therefore, it is a good idea to hold on to the positions until price should break below 14, 21, 31 EMA, then it would be a signal to take profit.
| 4 Q Rolling PER | 16 times | Dividend Yield | 4.36% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 55 sen | 4.55 % | 25.91 % |
| 31/12/2008 | 55 sen | 6.21 % | 24.58 % |
| 31/12/2007 | 75 sen | 6.82 % | 22.22 % |
| 31/12/2006 | 60 sen | 7.74 % | 22.89 % |
| 31/12/2005 | 55 sen | 8.40 % | 24.50 % |
Table 1: PBBank – 1295, yearly dividend, dividend yield, and net profit ratio.
Topglov – 7113: Technical Rebound, but downtrend still intact.
Chart 2: Topglov – 7113 (24/05/2010～15/09/2010)
As shown on chart 2, ever since price of Topglov fell below the 14, 21, 31 EMA on the 27th of July, it has been staying in a downtrend, with stock price falling up to RM1.20 or 18%. Although price rebounded at the RM5.50 support level, but it remained resisted by the 14, 21, 31 EMA, which is still serving as the dynamic resistance, thus the downtrend is still intact.
If price should start falling again after being resisted by the 14, 21, 31 EMA, it means that the downtrend shall continue, with the negative technical outlook. Technically, when stock price is trending down, with the 14, 21, 31 EMA being a dynamic resistance, all rebounds are technical rebound, not yet a reversal.
In other words, price of Topglov has to break above the 14, 21, 31 EMA successfully, and later form a Higher-low, with substantial volume, then only it is an ideal buy signal. Nevertheless, immediate resistance for Topglov is at RM5.50 level.
| 4 Q Rolling PER | .03 times | Dividend Yield | 3.64% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/08/2009 | 22 sen | 3.17 % | 11.04 % |
| 31/08/2009 | 11 sen | 2.71 % | 8.01 % |
| 31/08/2009 | 9.22 sen | 1.31 % | 8.38 % |
| 31/08/2009 | 9.00 sen | 1.04 % | 7.90 % |
| 31/08/2009 | 8.00 sen | 1.60 % | 9.06 % |
Table 2: Topglov – 7113, yearly dividend, dividend yield, and net profit ratio.
Revision of Last week's Case Study: AirAsia – 5099: Volume is low, weakening uptrend?
Chart 3: AirAsia – 5099 (24/05/2010～15/09/2010)
As shown on chart 3, price of Airasia breaks above the RM 1.93 resistance, while continue its uptrend. However, volume traded for AirAsia started to decrease, suggesting that the buying interests is getting lower. Technically, a valid break out should be accompanied with strong volume.
However, in reality, investors should consider this. When price of Airasia advanced RM0.70 or 50%, the initial buying power for an investors is reduced by around 33%, thus volume reduced after an extended uptrend is rather normal.
Nevertheless, the current uptrend for Airasia is still intact. Therefore, so long as price is still supported by the 14, 21, 31 EMA, it is a good idea to hold on to the position, until price should break below the 14, 21, 31 EMA, then it would be a signal to take profit. Next resistance for AirAsia is at RM2.00 followed by RM2.15 level.
| 4 Q Rolling PER | 7.77 times | Dividend Yield | 0 % |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 0 sen | 0 % | 17.27 % |
| 31/12/2008 | 0 sen | 0 % | -17.87 % |
| 31/12/2007 | 0 sen | 0 % | 38.90 % |
| 31/12/2006 | 0 sen | 0 % | 31.07 % |
| 31/12/2005 | 0 sen | 0 % | 10.25 % |
Table 3: AirAsia – 5099, yearly dividend, dividend, yield, and net profit ratio.
Conclusion:
Many subscribed to the idea of buying low right now, and wait for 'its turn' to rally, but a professional would not wait for his luck, he would take advantage of the current uptrend, and buy into the uptrend. That is why an average investors accumulated a large and diversified portfolio, while still waiting for his luck after all these while; on the other hand, professionals are focused, and they do not mind buying at a higher price, so long the uptrend is still intact.
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