Insas Vs Inari

I was asked the question, which one is better, Insas or Inari?

Looking at the following chart, since January 2013, the share price of Inari has gained 440% whereas Insas has improved by only 64%. In the last 2 years and 10 months, Inari has out performed Insas by 6.8 times. 

The above chart also showed that Inari and Insas moved in an opposite direction in the last 12 months. Why? I don't know.

Inari added 20 sens (+5.76%) today with high volume. It closed at Rm3.67.

Insas moved in tandem, gained 5.5 sens (+7.05%) also with high volume. Insas closed at 83.5 sens

If I compared their latest result for quarter ending 30th June 2015, Inari earned 5.57 sens a share with net assets at 74 sens a share; Insas earned 5.07 sens a share with net assets at Rm1.91. Insas at 83.5 sens looked better than Inari at Rm3.67.

Since Insas is holding 29.4% of Inari or about 214 millions share of Inari. If I divide 214 millions by the total number of Insas share of 663 millions. I get 0.322 share of Inari per every Insas share. And this 0.322 share of Inari alone at Rm3.67 is worth Rm1.18, which is 34.6 sens (41%) higher than the current share price of Insas at 83.5 sens. Don't forget about other business and assets of Insas.

Insas at this moment has reached the top of its resistance line. A breakout will further confirm that the major wave 5 is on.

Inari has another 33 sens to go to reach its upper trend-line to complete its wave (v).

Since Insas needs more time to complete its major wave 5, the major wave 1 of Inari may have 9 waves. 

If Inari doesn't stop at Rm4.00 and it moves above its upper resistance line, than it is on its sub-wave iii of wave (iii), can be very bullish with very high volume.

Well, anything can happen in the stock market.

Based on fundamental, Insas is better than Inari, but Inari's chart is more bullish with a strong up-trend momentum. But if Insas is trying to catch up with Inari and if Insas can close the gap between them, Insas may provide a better gain by percentage and it is on its major wave 5.

If Insas can complete its major wave 5 at Rm2.00, that is 140% gain. For Inari to gain 140%, it need to reach Rm8.80.

And if Inari can reach Rm8.80, the 0.322 share of Inari per every Insas share alone is worth Rm2.83. Mathematical logic sometime doesn't work in the stock market just like KLK and Batu Kawan. Sigh !!!


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