Genting International Singapore - darling of many

For some strange reasons, this stock somehow becomes the darling of many market players from Malaysia. To them, this could be THE only stock to buy from Singapore side. For some of the more fortunate players who bought around the end of past year at its recent low of 30cents+, this past few months have been rewarding to them. But for those many who missed the boat are asking 'can buy now ah?"

First if you ask me: I do not like a stock that has committed a huge sum of money into a mega project since it will be paying out cash month after month for the work in progress, and that comes with absolutely NO inward cash to the company. But of course, the 'experts' like to project the future and paint rosy picture for many companies' new venture. Since not many of the local companies pay you and me respectable dividends so I only want to look at the charts to decide whether it is a good buy for capital appreciation.

The weekly chart has nothing spectacular bullish in it as there was no bullish divergence formed before the current up moves. With that, I would only consider the recent bull move mimicking the STI. As at this weekend, the Stochastic has already turned down and crossed down its 80's signal line which is usually treated as an initial sell signal. The MACD has not turned negative and it is turning the corner and that is telling us the prior bull momentum is fizzling out fast. This is also being confirmed by the ADX which has turned flat which is confirming the end (even though this maybe a temporary one)of its prior bullish move. Meanwhile prices have already crossed below the upper Bollinger Band which is also signaling a sell signal.



The daily chart 's ADX has already gone below its 20 signal line which is confirming that this market is now range bounding without any significant directional moves. The sell signals are coming from a negative MACD which is becoming more bearish as it is now gone below its zero signal line. The Stochastic is now at its oversold area (as the ADX is low, so I will call that as oversold) and we may see some up move. But it will be premature to say that the bull will be back when the Stochastic crosses up again.

BUT, since the weekly chart is bearish and it dominates over the daily, I would like to see more concrete readings before I switch camp. So to answer the question "can buy here ah ?" - My thinking would be NO since there is no evidence of a major reversal. In fact, if you had bought this earlier and still have not sold, I would strongly advocate you should take your profit.