Monday, November 9, 2009
Why the switch?
Why the switch? First CIMB is getting expensive. It can run up to $ 14 if someone believe it should worth $15. Tanjong has been having trouble of breaking $ 16 resistance for a while because there has been no major institutional funds buying -- thin volume. That was the reason why I took profit on Tanjong earlier to put money to work in CIMB which turned out to be a good decision.
When I saw huge volume breakout from $ 16 two days ago, only guys with deep pocket can do it. So bye-bye $ 16 for a while, now it should aim $ 18- $19 or breaking a new high $ 20?. Given a choice of choosing 10% more upside on CIMB vs. 18-20% on Tanjong, I like Tanjong odds better.