THE days of making easy money off all-round exuberance in the stock market are likely to be over soon, and successful investors will need to make astute stock picks in the weeks to come.
One company of interest is aluminium alloy extrusion products producer Midas Holdings, which has rallied sharply over the past fortnight.
The stock touched a 20-month high of $1.08 last Wednesday, before closing at $1.07 on Friday. This comes amid news that it has clinched two contracts worth a total of 60.6 million yuan (S$12.3 million) for metro rail projects here and in China.
Those who want a more leveraged exposure than buying the mother share can consider a call warrant Macquarie Bank issued on Midas. This warrant, which expires in early June, has a strike price of $1. The warrant closed unchanged at 22.5 cents on Friday.
Another industry that has been doing well is the commodities sector, where firms have been putting on gains due to the recovering global economy pushing up commodity prices. Investors may want to take a look at Wilmar International, which has seen stock rating improvements by UOB Kay Hian, Goldman Sachs, Nomura, Kim Eng and CLSA over the past two weeks. Talk is that the improving market conditions may cause the group to revive its plans to list its China operations in Hong Kong, which were first announced in July last year.
The mother stock hit an all-time high of $7.17 last Tuesday and closed at $7.11 on Friday.
A call warrant which expires in early March by Macquarie Bank may be of interest to investors. The warrant, which has an exercise price of $6.80, gained 11/2 cents, or 8.6 per cent, to close at 19 cents on Friday.
Source: Straits Times, 18 Jan 2010.
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