Parkson Holdings Bhd

Parkson Holdings Bhd is principally involved in investment holding (a major holder of Parkson Retails in China), steel services, international trading and distribution of electronics components, manufacture and distribution of automotives and components. Last quarterly earning (Oct. Nov. Dec 2008) was 10.23 sen per share. Net assets per share was Rm 1.36. In the last few months the company has been buying back its own shares from the open market. Treasury shares accumulated to date is about 21.5 million.

From a peak of about Rm 10.00 in December 2007, the stock price dropped to about Rm 3.00 due to the world financial crisis started from the US. The bottom of the downtrend was formed in January 2009. Since then the stock price has been moving up steadily.

The stock is forming a double bottoms pattern as shown above. It has been trying to break the neckline for the last three weeks.

From the wave count shown above, if it can punch through the neckline, the powerful wave vii will be the next wave, failure which it will remain in its consolidation phase of a-b-c or a-b-c-d-e. Chances is quite high that it will break its neckline for a wave vii run up. Minimum target price is Rm 6.00