Farms Best closed at 62.5 sens today, down 5.5 sens. The magnitude of pullback is bigger than my expectation. My previous wave count for this stock is as shown below.
I have assumed the September's low as the end of wave E, it is also the end of mega wave (2). The magnitude of sub-wave ii may be big but it remains acceptable as sub-wave ii at this level.
However, if the price drops further next week, my alternative wave count as shown below may become more realistic, wave E has not yet completed.
The run-up since end of August is the major wave 2 of wave E.
Under this circumstances, major wave 3 of wave E may drop to 50 sens and below.
Farms Best is about to announce its 3rd Quarter earning. Its 1st & 2nd Quarters earning per share are 0.92 and 3.1 sens respectively, with NTA of Rm 2.77 per share I consider its current share price as very cheap.The only reason for it to go to 50 sens and below can be a very bad 3rd Quarter earning.
In her confirmation hearing before the Senate Banking Committee on Thursday, Janet Yellen said there are no asset bubbles - Not in the equity markets and not in the housing market.
.
No comments:
Post a Comment