Sunday, July 15, 2007

You got aim BBR?

I sold off yellow pages already, trimmed down my portfolio a little. Here's my current portfolio:

1. Pac Andes holdings (ROI = 33%)
2. Swiber (ROI = 157%)
3. CSC holdings (ROI = 21%)
4. Yongnam (ROI = 33%)
5. Straits Asia resource (ROI = 29%)
6. CH offshore (ROI = 33%)
7. Lian Beng (ROI = 47%)

Last time I mentioned cosco with minimum tp of 4.50. It ended cheonging so much to hit above $5. Last close was $4.90, way above my target price. Haha, quite happy that my chart reading and price objective is quite accurate.

This week hot stock could be BBR.

Weekly charts:

After a nice run up last year, the price undergo consolidation within 2 trendlines for around 6 months. Initially I thought it's a bullish ascending triangle, but it didn't look like it based on the volume (volume should decrease when the triangle is being formed, this actually increases).

Flag formation sighted, with target price of $0.27 minimum, provided breakout at 0.19 is cleared with strong volume (greater than 96 million). Based on weekly, doesn't look like it's going to rally. In fact, I see conflicting signals. As price goes up, volume increases and MACD crossed over, but RSI drops and stochastics seems to turn downwards. Let's look at daily charts to resolve the conflicting signals.

Daily charts

Daily charts look better. I like the fact that there is positive price divergence for the different indicators. As price goes down, MACD, RSI and stochastics actually trend up, indicating that uptrend should be coming. The price entry also looks clearer. First is at 0.17 (ema50days and 61.8% fibo). Another is at 0.160 (ema50 days and 38.2% fibo).


Price target: 0.27 upon breakout of 0.19 level with strong volume

Entry pt: 0.170 or 0.160 (for safer entry, risk is price might not reach this low and miss the breakout). Can buy upon breakout at 0.19 too (risk is breakout might end up in failure and therefore caught in high)

Breakout trigger: Rumors of potential land acquisition for property development. Totally unsubstantiated with evidence, could be a red herring. Do your due diligence.