Glomac – Looks Good!

I know I should be talking about Omedia as promised. But I am really not into mood to have a long post. I was actually half way typing it a few days ago until my laptop shut down on me and my works are all gone…  I shall continue later. There is good intellectual talk in Investlah.com about Omedia. If I am so lazy I will just take their comment and comment on their comment. Hahaha…

But I really like to bring your attention to Glomac..

The chart does looks good. At RSI below 30% it does mean this stock has been oversold. However there is no obvious trend on ADX where the line looks pretty flat to me. -Di on top of +Di means they we should short this stock instead. However looking at the MACD bar, excluding today, we could actually see MACD is trending up and share price is trending down. It simply tells me that trend reversal is coming soon. On the chart, you could see the support level is at around RM1.68-1.70. You can see share price trend up 5 times after it hits the support level. Could this be another round? I think so… Too bad I don’t have enough cash anymore. Else I will average down my buying price from RM1.75 to RM1.71… Anyway for those that yet to have position, I seriously think this is a good time to enter.

In fact, I just can’t find the reason why the stock is performing so badly. I monitor every single intra-day trades and I notice the bid down was done by big seller. I suspect is institutional. One selling order is like RM100-RM150k and pushed the share price down. I have reason to believe once the profit taking is done, those that miss the boat earlier will buy in. Glomac is a staging a good quarterly result with healthy properties launches in the pipeline. Not to mentioned, it is trading at single digit forward earnings of 9.0x coupled with 5% dividend yield. I believe downside may exist for a couple day but limited unless something very wrong with the company which we don’t know. Then it is too bad.

I am happy because MBSB did very well today, up more than 5%. Today is the last day to pay for the OR which I did. I hope to see more upside. At the back of the envelope calculation if MBSB is to hit RM2.00, I could potentially rake in 50% return on my capital. Finger cross…