Sinarmas Land continued its amazing surge today. At the close of trading (21 May 2013), the price was as follows:
Sinarmas Land: 75.5 cents (+ 9 cents) (+13.53%)
Sinarmas Land Wt: 51 cents (+5 cents) (+10.87%)
Volume surged again and was higher than yesterday at 29.743 million and 8.144 million shares respectively.
Important: Stop loss now raised again to 69.5 cents.
Can the surge continue? Well, nobody knows. There was profit-taking this afternoon which took the stock back to 72 to 73 cents but it ended strongly to close at 75 cents. So, the bias is still towards the upside rather than the downside.
Sinarmas is now like an athlete running the 100m race. The athlete sprints in such short-distance races. However, he obviously cannot keep up this blistering pace for long. So, neither can we expect Sinarmas to continue its double-digit percentage rises for long. It has gained 60% in 7 trading days! Hence more moderate rises should be expected.
With such a steep rise, I am also prepared for a correction if it comes. Hence the trailing stop-loss is now raised to 69.5 cents. The profits from this trade have been fabulous and it is most important to protect the profits now rather than to be greedy.
At the close, I sold off 1/5th of my holdings in Sinarmas Land at 75.5 cents. I needed the money to buy into Gallant Ventures. That is another story which I will write in another post.
The warrants now trade at a ridiculous 14-cent discount to the mother share. How does one explain the logic? ……….
Mighty Knight - Investing in the Singapore and Malaysian Stock Markets 