MRCB: NOT-A-GOLD-MINE? REALLY?
This is my second time writing on this blog. I've received so many questions on how far this counter can go. So, this is the analysis. My style of writing will be different on this one, less serious, but quite detailed than before.INTRODUCTION
First, let's take a look at our current 15 minutes chart to detect, even the least price movement, while filtering the noise.
Chart 1
Chart 1 shows 0.690 per unit as a clear pivot point. MRCB has been holding this value despite heavy selling since 10 a.m, 13th July 2018.
Chart 2
Chart 2 then shows the price movement, without any noise. If any lose of confidence should show at 13th July. Friday was the best day to show it. Why? People usually use Friday as profit-taking day and will not be taking any risk to hold their portfolio untill next week. Combined this with a lose of confidence in this stock, the price will easily wipes .670 value, hence provide a clear proof of 'lose of confidence' in this stock. However, chart 1 has showed a clear strength within its adjustment range. It hits it peak of .740, retracing .720, before further sells down on .700 - .690 range.
I've remained constant that this counter is undervalued, better than ever. What made it undervalued? Rumors.
SHARE PRICE CATALYST
Malaysian Resources Corporation Berhad (MRCB) is not a political-related company like the rumours have said. MRCB is currently waiting these announcement before the share price escalates to meet at least R3, or probably higher, quoting UOBKayHian research target of RM 1.36.
Noted as high impact (Higher than 10% price change from LTP):
Mid impact (Lower than 10% price change from LTP):
1. Official approval of HSR. https://www.thestar.com.my/business/business-news/2017/11/29/gamuda-teams-up-with-mrcb-for-hsr/
2. Sale of completition of Bukit Jalil Project. https://www.thestar.com.my/business/business-news/2018/03/27/mrcb-land-bags-rm11bil-job-to-manage-bukit-jalil-project/
Here's my previous chart to show how undervalued this share price right now. As of writing, the price has a LTP of 0.695 per unit.
Still not a gold quarry for you to start mining? It depends on you.
If you choose to believe with rumors, it depends on you. But, I choose to believe with various experts from research bank, track records and management stability.
- End
Previous entry: https://klse.i3investor.com/blogs/MRCBanalysis/165258.jsp
