Farms Best is one of my stocks that performed badly in term of price appreciation. In the last 4 to 5 months its price appreciated by about 13% from 62 sens to 70 sens (until last Tuesday), a miserable 8 sens over 4-5 months. However it added 4 sens in the last two days to 74 sens with high volume. Is this the starting of its next run-up ?
For 5 years, Farms Best has been moving up and down within an uptrend channel forming its A-B-C-D-E mega wave (2) as shown above.
Assuming it has completed its mega wave (2) by September 2013, it proceeded to complete its wave (i)-(ii) by early March 2014 and completed its sub-wave i-ii last week.
If I am right, its sub-wave iii has started and it should continue to move higher with good volumes in the next few trading days. Hopefully it can break its upper resistance line at around Rm 1.20
However, if I am wrong and if its price starts to move lower again, then the E of its mega wave (2) has not been completed yet, as shown below. Wave E may go below 50 sens.
Its 2013 annual earning is 7.33 sens a share (P/E is about 10). Its Net Assets is Rm 2.66 per share. It has cash of about Rm 50 millions, but its bank borrowings is about Rm 250 millions.
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