Straits Asia Resources (SAR): Climbing on Up Trend Steadily

Straits Asia Resources has been climbing up steadily since the breakout from the Falling Wedge.

The current uptrend is still intact with the uptrend support at $2.20 (which is also a 50D MA support). SAR has moved above 20D MA, 50D MA and 200D MA.

  • Current Price = $2.34
  • Dividend Yield = 4.65% (pay out quarterly)
  • Current PE = 13
  • Rolling PE = 16
  • FY08 PE = 15.3
  • FY07 PE = 60.9
  • FY06 PE = 33.9

This Post Has 18 Comments

  1. Ricky


    Sorry to ask, I just newbie who start to learn about trading.
    How you calculate rolling P/E and what is the different between current P/E?


  2. Marubozu

    Hi Ricky,
    Rolling PE = Current Stock Price / EPS (for the latest 4 quarters)

    Current PE = Current Stock Price / last Financial Year EPS


  3. Desy

    Maru, how you see the fundermental for straits Asia? Mid – long term?

  4. Marubozu

    SAR main business is coal mine, a source of energy for economy. What will happen to the coal price and coal usage when the economy fully recovers? India and China, the two economy powerhouse for the next ten years, are the big coal consumers in Asia region.

    Straits Asia Resources Financial (base on FY09):
    Net Profit Margin = 17.8%
    ROA = 13.5%
    ROE = 28.3%
    Current PE = 13 (base on $2.35)
    Dividend Yield = 4.63% (paid quarterly)
    EPS is growing year over year.
    SAR has expanded the coal mine capacity.

    You should be able to answer this question yourself base on the information I have provided.


  5. Desy

    Tks bro. Gd analysis.. Ciao

  6. ed

    Hi Marubozu.
    What is your comment on the current technical charts for Straits Asia, as of today 22 Nov 2010 ? I got some at 2.5 and am wondering if I should lock in the profits now ? It is currently trading at 2.55-2.56.

  7. Marubozu

    Hi Ed,
    Up trend for Straits Asia Resources is still intact. The stock price is still above 20D, 50D and 200D MA which is still a bullish chart pattern. Resistance at $2.74 and the
    next immediate support at $2.40 which is a 20D MA support.
    Your entry at $2.50 was not a really good entry and you are now at the half way point to the next resistance and support.


  8. ed

    Hi MArubozu.
    Agreed. When i got it at 2.50 last week, it went down a couple days later to 2.42. Really bork my heart, did not attempt to average down for fear of it going down further. Last firday, it suddenly burst back to life.
    Shall wait for levels close to 2.74 before I throw back to the buyers.

    Thanks for your advice.

  9. ed

    Hi Marubozu.
    Could you advise me the latest status of the technical charts for Straits Asia ? Friday, it hit a high of 2.68, before settling and closing at 2.64. What is the near term resistence and support , and should i be looking at 2.79 to let go , or is that unrealistic ? Any tech advice is appreciated.

  10. ed

    Hi Maru.
    Welcome back from your holidays.

  11. Marubozu

    Hi Ed,
    Sorry for the late reply. I can’t really comment when you can exit SAR because I am not sure whether you are trading or investing on Straits Asia Resources, and your holding time frame. It all depends on your trading or investing strategy.

    I bought SAR at $2.04 and have my initial exit target of $2.60 base on my past analysis

    My strategy on SAR is mid to long term investment and collect dividend quarterly until SAR to start down trend.

    Although SAR has reached my original exit target but I am monitoring closely the signals to exit base on the following condition:
    (1) Current PE of 14.95 (base on price $2.69) is at its fair value. SAR is still not over value yet and may have further upside potential. In addition, there are stock upgrade by OCBC and CS recently.
    (2) Reversal Chart Pattern. So far the chart pattern is still showing a good uptrend although closing in the resistance of $2.74.
    (3) If SAR breaks $2.74 resistance, I will continue to hold and wait for the chart patterns to tell me to get out.

    If you are trading SAR short term, $2.74 is the resistance and $2.40 is the 50D MA support (also very close to the uptrend support). You need to decide whether you want to get out using the strategy of “buy near support, sell near resistance”.


  12. ed

    Hi Maru.
    Thanks for your feedback. Very informative and analytical.
    I bought my SAR at 2.50, and I am also looking at medium term investment strategy sicne the brokerage firms are upgrading this darling, and the coal business is going up, especially this December-Jan period.. Today, SAR broke 2.74 and reached a high of 2.80. I guess I will also hold a litle longer. But at the same time, I am also looking at intra day shorting opportunities. I realise the day to day price spread is pretty good. Now that 2.80 has been reached, what is the next resistence for this baby ? 2.90 ??

  13. Marubozu

    Hi ed,
    Today candlestick pattern shows a Shooting Star at the resistance level. Shooting star on an uptrend is a potential trend reversal pattern especially appears at the resistance. This resistance $2.74 has not yet broken successfully until this level become a support.


  14. ed

    Morn Maru.
    Nomura downgraded Straits Asia to Reduce and Tgt Price at 2.21. Based on your view of the current tech chart, is the Shooting Star still ina action ? Has the stock confirmed its downtrend path, or is it still hovering and retracing back a little, eventually moving upwards ? The Nomura news did not bode well for Straits Asia. It went from 2.80 all the way down to 2.68 over the last few days. What are the resistence and support levels for the stock now ?


  15. Marubozu

    Hi ed, this shooting star candlestick pattern showed a trend reversal in the short term. I expect SAR to retrace back to $2.60 level which is 20D MA support or may be at $2.40 which is a 50D MA support. So far the 50D MA has shown a very good support. The uptrend line coincides with the 50D MA support as well. The uptrend is still intact unless this up trend support line is broken.

  16. ed

    Hi Maru.
    Much has happened to SAR from 7th to 8th Dec. Today it closed at 2.53. So are we looking at it dropping to around 2.40 in the near future ? What will be the near term resistence and support now ? Bought mine at 2.50, such a pity i did not let go when it was in the 2.70s. If it is going to drop to around 2.40 in the near term, then I will let go of my current lot first, and then come back again when it is around 2.40.

    Thanks for your advice.

  17. Marubozu

    Hi ed,
    Pls look at the lastest SAR chart that I have posted. You can see the up trend support and also resistance there. More importantly you must understand what mistakes you have made in this trade. You can summarise it and try not to repeat the same mistakes again.


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