Inari Amertron Bhd (Rm 3.30)
Inari moved up strongly today with high volume of 18.7 million shares. It gained 17 sens (+5.4%) to close at Rm 3.30. It is on its way to complete its wave (vii).
Insas Bhd (Rm 0.975)
Insas with 402 million (19.91%) Inari shares in hand was actively traded today with 6.79 million shares changed hand but gained only 1.5 sens.
Technically Insas has one more down, the sub wave v to complete the wave c of wave (iv) before it can have its wave (v) run-up unless due to the upwards momentum this last wave is missing. Under this 'one wave missing' scenario Insas will continue to move higher tomorrow to form its wave (v). Once it crosses the Rm 1.00 level, it can be taken that sub-wave v is missing and Insas is already on its wave (v).
402 million Inari shares at Rm 3.30 is Rm 1.3266 billion. If this is divided by Insas's 632 million shares, it is Rm 2.10 for each Insas share.
Besides Inari, Insas has many other businesses.
From Insas latest quarterly report, its cash and deposits is Rm 606 million. Borrowing is Rm 290 million. Net cash is Rm 316 million, that is another 50 sens a share. Looking at the following price-comparison chart I cannot understand why should there be a price divergence between Inari and Insas starting July 2017.
