Hope today's KLCI plunge more than 20 points will not turn into the beginning of its trend reversal, otherwise CIMB will also plunge kaw kaw.

IB financial analysts TPs cannot be trusted (based on past performances of many stocks). That's y we need to do our own analysis (though we may use the same tools or formula as them).... we will usually get a different TP from IB analysts. Even among all the different IB analysts their TPs also different from one another.

@shpg22: As u can see.... accountants and professional financial analysts also use price changes for equity valuation (click the link below for explanation).

https://accountingexplained.com/capital/equity-valuation/beta-coefficient

Hope this settles the debate on the importance of prices (and comparisons).

Here is a good one:

https://accountingexplained.com/capital/equity-valuation/beta-coefficient

......

Yes, go to internet & google "Beta Coefficient" for the correct formula to use.

Not really complicated. They r calculated automatically using computer (no need to do anything personally). Just need to refer to them once in a while & interpret correctly.

@Jururawat: I can see y u r so sure that the price of CIMB will go up to RM11 in 18 or 24 months. However, I think your correlation coefficient calculation may be misleading for the following reasons:

1. Using beginning/end of monthly closing prices is less accurate than using daily closing prices.
2. I hope u personally use more than 15 data bcoz in statistics we normally use at least 30 data (closing prices); anything less than 30 data will be misleading.
3. Professional analyst use the % of price changes instead of raw prices of KLCI & CIMB to calculate their correlation (I use the daily % changes in KLCI & CIMB for past 60 days which show a covariance of 0.000109 and a Beta Coefficient of 1.454297).

For comparison purposes: Public Bank has a Beta Coefficient of 0.922029; that means Public Bank is more correlated to the KLCI than CIMB bcoz 0.922029 is closer to 1 than CIMB's 1.454297. As u can see the following price changes this morning:

KLCI: 1,789.45 (-0.86%)
Public Bank: 24.36 (-0.16%)
CIMB: 5.87 (-1.01%)

Good! We have many experts here... so we sure make profit one, hahahaha!!

I think for most people here, it is easier to focus on the first support at RM5.77 and the 2nd resistance at RM6.56. Sell if drop below RM5.77 (cut-loss) and sell when almost reaching RM6.56 (take profit).

But for long-term investors, they may buy more if price drop all the way to RM5.21 (average-down) and hold on even when price breakout above the 2nd resistance (RM6.56).

Take my suggestions at your own risk (no guarantee given).

Thanks for the compliment. ^^

O.K. Got it. As for my answer number 2, I was just giving a simplistic answer to BetorInvest.... something like saying u can't use a RM3 million bungalow to compare the true value of a RM150k low-cost terrace house. It doesn't mean I know nothing about bank valuation.

When u talk about bank valuation, I was expecting u to use CET1, Cost: Revenue, % of non-performing loans for bank-to-bank comparison (other than those general valuation ratios) because those were the performance measurements used by banks themselves. And if u really want to go into true value of any stocks (not just banks) u should use the profitability index derived from their net present value (NPV).

My point is, my answers in response to other people's comments were catered to their discussions (since their discussion was about price patterns). They were talking in terms of price changes (chart) with a little reference to TA and volume analysis. Anyway thanks for your enlightenment.

The discussion among Jururawat, jiunn, BetorInvest, Johnathan Keung & myself was about using Maybank's price (not Public Bank's price) to give us an idea of where CIMB's price should be to reflect its true value. Can u use your bank evaluation expertise on this discussion?

So, please answer BetorInvest's question: can compare CIMB with Public Bank or not?

Those r valuation ratios for all businesses in general, we r talking here about bank valuation only (but of course those ratios u mentioned r also helpful partly).

I can agree with that.... continue (give us more of what u think is the true value of CIMB... it will be more useful for us to know).

Please go ahead & enlighten us more about bank valuation.... if your explanation is correct then we all can learn something from you (no harm with that).

Maybe that RM2.65 was an earlier one.... I was referring to this:

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5679777

https://www.thestar.com.my/business/business-news/2018/01/31/overwhelming-response/

Sorry, it was around end of Jan 2018 (not March 2018) and it was new placement issue (similar to rights issue except the difference is every shareholder can buy rights issue but only big funds can buy placement issue but the effect of both rights or placement issue are the same, i.e. it will bring down the share price).

Example of rights issue: Earlier this year (I think around March 2018) SPSETIA issued rights issue at RM3.07 when the price of its share was around RM3.30. On the day the rights issue took effect, the price immediately dropped from RM3.30 to RM3.07 then 2 weeks later rise to RM3.25 but now the price is RM3.00, lower than the rights issue.

Agree with everything said by callmeadoctor..... the Big Picture for TOPGLOV is very bright. For me, I use TA chart just for timing my entries but when I decide whether to sell or not I don't just depend on the chart; I also think of other factors like what was explained by callmeadoctor and Toto2009.

Agree with Ethan Chan. Many people already disposed YTL shares. Notice the closing price on 31 July (end of last month) was RM1.35 and the closing price on 10 Aug (Friday) was RM1.37..... not much change even with 2 weeks of continuous share buy backs (SBB). But if people here want to keep YTL for long term also no problem la..... u don't lose money here, u only miss the opportunity of using the money to invest in other more promising companies.

Nothing excited about 40 sen rights issue. If that's true then price will quickly drop from 58.5 sen down to 40 sen & then lower still to 30 sen.

Downside risk for CIMB is it may drop to its first support at RM5.77 or all the way down to its 2nd support at RM5.21. So, if anyone bought at RM5.93 ..... be prepared to cut-loss if it drop below RM5.77, don't wait till it drop to RM5.21. TA wise, it is more likely to move higher next week but no matter how good the chart of CIMB is at the moment, things can suddenly change without warning. That's y no guarantee given & buy at your own risk.

Agree with Toto2009, yesterday only profit taking & furthermore it was Friday (people don't want to hold on to weekend risk). i believe if Monday the price don't move up then Tuesday or Wednesday the uptrend will resume. That's y I didn't take profit yesterday when the price reached RM10.64.

@I3ryan: I wasn't the one who brought up insider trading... it was KL_Insider. I was just sharing more information in relation to his argument about insider trading so that people here can decide for themselves whether there is any insider trading or not in YTL.

I only asked u to refer to someone else post bcoz u quetioned me "What is it got to do with YTL?" I asked u to read it youself bcoz I "don't want to say anything (about insider trading) & I don't want to make any accusations."

And then later u bombarded me with many more questions & demanded that i give further enlightenment.... u see what I mean by "don't b sensitive"?

I already bought from RM9.01 to RM10.04 and hold till now.... so I don't want to buy more if drop from RM10.50 (better take profit... & buy back if it drop further).

If next week it drop much lower than RM10.50 I also may want to sell & take profit b4 it drop too low.... it is just that I want to give it a chance to go up to RM10.70 first.... see can or not, if clearly cannot then I will sell.

Close at RM10.50; a little lower then my predicted close between RM10.54 & RM10.60. Monday we will just wait till it's Monday. Whether it will go lower than RM10.50 or go higher we will just have to decide whether to buy or sell then.... we should be free to decide without having to be tied down by any prediction.

Chart no matter how good cannot guarantee the price will keep going up one (BTW, how do u know it will not go up next week?).... also cannot tell next week will go down one. We r all taking risk only... whether will make more money or lose some money that is call risk. If chart can b 100% sure then many people will b super rich already.

Chart looks good does not mean that u will make money immediately.... don't lose money is O.K. already. But even if u bought at RM10.50, u could still sell at RM10.64 & make some money there if that is your style.

So, don't assume that we r chasing high.

No need to chase.... I bought from RM9.01 to RM10.04; I just sit back & relax.

Don't b so sensitive.... I am not saying anything or making any accusation. Just make your own conclusion.... no need further enlightenment.

I am not selling yet, even if it drop back 10 sen or more.

It doesn't matter whether your chart can see sharks or not.... the fact is u have missed the boat when it was around RM10.10. Imagine if u bought at RM10.08 and u can sell now at RM10.50 or hold on longer (if u r greedy).... how much u would have made even if u sell now.

Chart looks fine; queue also looks encouraging.... depending on whether u dare to enter or not. If u didn't enter when it was below RM10.20 then u would find it hard to enter now.

Read previous comments of KL_Insider.

I also don't want to talk here bcoz everytime I talk some people will get angry and start barking.

@victory015:

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5736001



victory015 good profit , where do you see it?
10/08/2018 11:30

A recent example of insider trading offense in Malaysia:

http://www.freemalaysiatoday.com/category/nation/2017/11/24/ex-ceo-stanley-thai-remisier-guilty-of-insider-trading/

......

Too quiet bcoz all the positive campers gone already.... left only those negative campers talking among themselves.

@HL Chan: After bonus issue date is out, the price will keep going up until the ex-bonus date.

Today may close at anywhere between RM10.54 and RM10.60 (harder to predict exact price on Fridays).

@BetorInvest: U really ask so many questions in one comment. The answer to your last question:

It is safe to enter if (1) it has good fundamentals (use FA) and (2) TA shows the right timing to enter.

In the case of CIMB, (1) it has good fundamentals (very profitable & growing) and (2) TA is suggesting that now is a good time to enter.

Buy at your own risk (no guarantee given)..... good luck!

Big funds r in Public Bank bcoz it is a very profitable & financially strong bank. CIMB & MAYBANK r weaker financially. However, I've looked into CIMB's financial statements and noted that it is very profitable too. CIMB's price went down badly immediately after the May 9 election result and a new PH government.... it must b due to Nazir Razak being its chairman (not bcoz it is not profitable).

@BetorInvest: U can't do that for 2 reasons:

1. The chart pattern of Public Bank is very different from CIMB's whereas CIMB & MAYBANK's chart pattern look quite similar.

2. The price of Public Bank is around RM24.00 (way too high from the other 2 banks) whereas CIMB & MAYBANK's prices are closer to each other (only a difference of a few RM).

Closed at RM10.40 .....just as I've expected.

But there is a strong resistance at RM5.99; must breakout above that first.... otherwise it may fall back to below RM5.90.

Today likely to breakout above RM6.00!

If it is not due to speculation of Nazir Razak's impending resignation then what is the reason for this sudden rise in price so quickly?

This stock if down then down a lot.... if up also up a lot (and very fast too)!