From Chart 1, we can see the sharp plunge in Tenaga's share price. At
the time of writing, the share price has stabilized at RM12.56.
Chart 1: Tenaga's 5-min chart as at Tenaga 18, 2015_2.45pm (Source: ShareInvestor.com)
The monthly chart below shows that Tenaga's long-term uptrend has halted
in the past few weeks- probably due to reports that it has to come in
to help out in Project 3B. Tenaga's share prices were moving in a large
expanding triangle, with immediate support at RM12.00. If the share
price falls below this mark, the downtrend should begin in earnest.
With the new cost pass through regime in place, Tenaga's share price
weakness may be a temporary phenomenon due to the perceived bailout of
1MDB's Project 3B.
Until the details of the purchase of Project 3B are announced, we are
not sure how it would benefit or impact Tenaga. For now, I believe that
Tenaga could be a good BUY if it tests the RM12.00 mark.
Chart 2: Tenaga's monthly chart as at Tenaga 18, 2015_2.45pm (Source: ShareInvestor.com)
Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Tenaga.
TENAGA (5347) - Tenaga: Buying 1MDB's stake in Project 3B
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