PPB Group was beaten down partly due to the poor performance of Wilmar. PPB Group owns 18.4% of Wilmar which is listed in Singapore and now it is trading at a depressed price of about S$5.51 from the recent peak of S$7.14. The latest significant drop in Wilmar's profit will no doubt adversely affect PPB Group bottomline but I believe that PPB Group will still enjoy a very profitable year.. Anyway, without the problem of reduced Wilmar's contribution, PPB Group will not be trading at a discount to the recent peak of RM19.58 (refer to chart above)
Next, we need to look at the second chart for any sign that this counter is about to turn up.
There is a golden cross formation at MACD few days back (28 December 2010)
Both RSI and Stochastic are hooking up, which suggest that this counter is about to move up at least temporarily. The 50% Fibonacci retracement is at RM18.10, which is the immediate resistance and once penetrated it will probably move up to the 38.2% retracement which is at RM18.45
It should be an opportunity to buy at least some when you see weakness say around RM17.30 or even RM17.40
1 comment:
Just purchased 1000 shares at RM17.38 on weakness today.
Hope to see higher price from here.
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