Saturday, August 03, 2013

PRK Corp Displays Strong Uptrend

I highlighted PRK Corp on 19 May, 2013 in this blog. The price was then at RM2.02. Last Friday, the stock closed at RM3.13 after it hit a high of RM3.18. This means that the stock has gained RM1.11 in less than 3 months!

The company denied that the management  was in talk with any party for any merger or privatization when queried by Bursa. It is normal for the management to answer in this manner. 

In my opinion, a privatization of the stock is likely in view of the fact that the stock is very much undervalued even at today's price of RM3.13.

Its solid balance sheet showing plenty of cash in the bank, high net tangible assets and good earnings all point to the possibility of a privatization.

The above daily chart clearing displays that the stock is in an uptrend. Technical analysis says that when a trend is in motion, it (the trend) is likely to continue in the same direction. I subscribe to this notion.

How high will the stock go? I don't know. 

It's best to stay with the stock until, the chart shows a reversal of the trend.

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