Its latest quarterly earning is only 0.01 sen a share. Net assets at Rm 1.71. With about Rm 5 million cash and Rm 26 million of borrow. Nothing is impressive.
But I find its chart technically quite interesting. LBICap has its peak in January 2014. Since then it has completed a 3-wave A, 3-wave B and by January 2017 it has completed another 3-wave down and started to rebound.
From its current level, I can see two possibilities.
The first possibility is as shown below, a 3-3-3-3-3 A-B-C-D-E consolidation. The current rebound is wave D that is likely to reach Rm1.50.
The second possibility is a 3-3-5 A-B-C formation.
The current rebound is wave 4 of C with likely target of Rm1.32. What is so interesting ?
The answer is its Warrant-A.
This warrant is going to expire on 17th April, 2018. Not much time left. Each warrant can be converted into 1 ordinary share at Rm 1.00 (Conversion price).
The interesting thing is that, at today's closing price of 18.5 sens for the warrant and Rm1.21 for LBICap, the warrant has a negative premium of 2.5 sens. For every one sen up for LBICap, I expect its warrant to move up one sen in tandem.
Even for the second possibility with wave 4's target of Rm1.32, 11 sens up for LBICap, a similar 11 sens up for the Warrant-A from 18.5 sens to 29.5 sens is 59% gain. This is interesting, right?
The next big question is, "will it move as what I have projected ?"
I hope it will, I pray that it will but I really don't know whether it will. In stock market, anything is possible. That is why the market can exist.
And to be frank, sometimes I too was caught on the wrong foot.
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