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TwitterStraitsAsia was listed on the SGX Mainboard on 3 November 2006. The Company was incorporated on 10 June 1995 and is a subsidiary of Straits Resources Limited, a diversified resources company listed on the Australian Stock Exchange. The Company is primarily engaged in thermal coal mining on Sebuku Island, South Kalimantan, Indonesia and currently holds the rights from the Indonesian Government to mine for coal in its concession area until 2027.
The Company’s strategy is to be one of the industry’s most efficient and cost competitive thermal coal producers. In addition, StraitsAsia is developing complementary commodities marketing and resources infrastructure businesses. They are also exploring opportunities for new business, investments and acquisitions in the natural resources and mineral and metal extractive industries, primarily in the Asia-Pacific region.
Since November last year, the price was traded in a $2.46 to $4.20 trading range, after enjoying a very bullish ride since its listing on the exchange. The IPO price was $0.67. Currently the price is trading at $2.63, near the bottom level of the trading range after rebounding when price hit $2.43 on 25th of July. The bottom level of this trading range is considered a strong support level as it was supported three times since November last year.
The trend may be down because of the decline since June this year, but the momentum indicators like RSI and MACD are firm. Furthermore, the MACD has cut above its trigger line (The 9-day exponential moving average of the MACD) to indicate a short term trend reversal up. With the firm support and reversal, the price of StraitsAsia is expected to rise.
Here are some recent developments for StraitsAsia. On July 28, UBS cuts target to S$5.20 from S$5.80. On July 7, Goldman Sachs upgrades StraitsAsia to Buy from Neutral, maintains S$4.70 target price. On July 4, OCBC Research maintains target at $4.80. On June 25, Credit Suisse said that StraitsAsia is trading at attractive entry point with $4.10 target. On June 24, CIMB recommends a technical sell with short term target of $3.10 to $3.14.
Daily Straits Asia chart as at 30 July 2008, using NextVIEW Advisor
With a strong support and steady reversal, price is expected to increase further, with a stop risk at $2.40. Technical price has potential to test $3.30 resistance, with a more aggressive target at $4.00. So, the upside potential is higher than the downside risk.
Commentary and analysis by Benny Lee
Since November last year, the price was traded in a $2.46 to $4.20 trading range, after enjoying a very bullish ride since its listing on the exchange. The IPO price was $0.67. Currently the price is trading at $2.63, near the bottom level of the trading range after rebounding when price hit $2.43 on 25th of July. The bottom level of this trading range is considered a strong support level as it was supported three times since November last year.
The trend may be down because of the decline since June this year, but the momentum indicators like RSI and MACD are firm. Furthermore, the MACD has cut above its trigger line (The 9-day exponential moving average of the MACD) to indicate a short term trend reversal up. With the firm support and reversal, the price of StraitsAsia is expected to rise.
Here are some recent developments for StraitsAsia. On July 28, UBS cuts target to S$5.20 from S$5.80. On July 7, Goldman Sachs upgrades StraitsAsia to Buy from Neutral, maintains S$4.70 target price. On July 4, OCBC Research maintains target at $4.80. On June 25, Credit Suisse said that StraitsAsia is trading at attractive entry point with $4.10 target. On June 24, CIMB recommends a technical sell with short term target of $3.10 to $3.14.
Daily Straits Asia chart as at 30 July 2008, using NextVIEW Advisor
With a strong support and steady reversal, price is expected to increase further, with a stop risk at $2.40. Technical price has potential to test $3.30 resistance, with a more aggressive target at $4.00. So, the upside potential is higher than the downside risk.
Commentary and analysis by Benny Lee
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