Dear valued readers,
Ooi
Please look at the technical chart of
Jaks nicely, do you know that the chart pattern is called "Cup And
Handle Chart Formation" ?
It is very important
for the share price of Jaks to cross 1.43 and closes above 1.43, then
the share price of Jaks will skyrocket up the roof once the share price
stays above 1.43.
Cup And Handle Chart Formation is ready to be formed once the share price of Jaks breaks above 1.43.
The unit 1 of the power plant of Jaks
in Vietnam is ready to produce electricity commercially in March 2020,
unit 2 will produce electricity commercially in May 2020.
I believe foreign funds will come in to buy up Jaks shares after the power plant is producing electricity commercially.
The reasons why the foreign investors buy power plant 6 months ahead
- Power generation business is unlike other businesses which depends on supply and demand. There is a big variations on product pricing and its cost.
- Power generation business is a contractual business with pricing and others stated upfront in the contract agreements.
- The risks are project delays and unexpected project costs overrun.
- Big Investors will not give a high PER during the early phases due to the aforesaid risks.
- Once the project runs smoothly and near completion, a higher PER will be accorded.
- I am not surprised a PER of 15 will be accorded to both Jaks and MFCB once it started its earning to sell electricity respectively.
- A steady future income or revenue and cash flow for both Jaks and MFCB with good contractual margins.
- The share price of MFCB moved up north rapidly in December 2019 (one month before the power plant in Laos produces electricity commercially in January 2020). I believe the share price of Jaks will follow the same price trend of MFCB.
I
expect the share price of Jaks will move up north to 1.86 which is
161.8% of Fibonacci Projection. Please refer to the technical chart
attached.
I believe the share price of Jaks will move up north in next week because Parabolic SAR had shown a buy signal on 7/2/2020.
Please watch up for this stock to explode in the very near future.
Final decision to buy is always yours.
Thank you.
Ooi
寧可天下人負我, 休教我負天下人
Disclaimer :
Please
be informed that the aforesaid stocks are solely for the purpose of
education only ; it is neither a trading advice nor an invitation to
trade. For trading advice, please speak to your remisier or dealer
representative.
Final decision to buy is always yours.
https://klse.i3investor.com/blogs/OoiTeikBee/2020-02-08-story-h1483732783-Jaks_Cup_And_Handle_Chart_Formation_will_form_once_the_share_price_of_J.jsp
