Saturday, March 02, 2013
Multico To Move Higher
Multico closed up 12sen from Thursday's close at 1.53 last Friday with 1537 lots traded which is above normal volume transacted daily. This is a bullish display. I believe the stock is on track to move higher. As shown in the chart, the resistance is at 1.60. This means that there will be a lot of sellers at 1.60. Whether this resistance will be breached or not remains to be seen. If the resistance is surpassed, then the stock is likely to move up further. Another 20 to 30 sen rise is most likely.
Multico is in the course of claiming back some RM41.77 million from some of its former directors. It is likely to be successful as the high court has ruled in favor of the company. This amount is a big sum to the company as its paid-up capital is only RM44.4047 million.
Multico was traded to as low as 10.5 sen in 2008. I became interested in the stock in 2011 when on Dec 28 of that year I bought 19000 shares at 76 sen per share. Since then I have been accumulating the stock every now and then. In fact I added another 13,000 shares at RM1.39 per share on 27 Feb 2013.
In the annual report for the year ended 31 July, 2012, I noted that Fong Siling (Cold Eye) has 1.2 million shares in the company. This give me added confidence as Mr Fong is well known as a savvy investor.
I believe Multico has a bright future, and I shall hold on to my stock.If you wish to join me on this profitable ride, you are welcome.
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Whether you buy, sell or hold as as result of this article, you do so at your own risk absolutely.