FARMBES Ready To Take Off Again?

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Dec 05 2006
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I watch with great interest the way Farm’s Best Bhd (FARMBES : stock-code 9776) and its’ daughter stock Warrant (FARMBES-WA : stock-code 9776W) perform right after 4 pm (1 hour left before closing bell) today. While the mother share up almost 12% to close at RM 1.22, the daughter share closed 55% up at RM 0.28.

As of my composition at this moment, I couldn’t find any concrete news to justify the run-up. This stock which seems to break-away from its’ resistance at RM 0.27 (FARMBES-WA) triggered FinanceTwitter and MACDBuy” signal after today’s closing.

The Stochastic just crossed and RSI is gaining momentum with good volume since end of Oct-2006. The ratio today registered 356 Bulls : zero Bears from 12 Bulls : zero Bears yesterday, the highest since 22-Sept-2006.

Recently, Aeneas Portfolio Co LP disposed of 1.68 million shares or 3.02% in poultry-based Farm’s Best Bhd on Sept 22 and Sept 25.

On Sept 19, Aeneas, a US hedge fund company run by former SAC Capital Advisors LLC money manager Thomas Grossman, came under investigation by US Securities and Exchange Commission and the Securities Commission after bets on Malaysian stocks caused losses of about 60% in its Priam fund.

Priam and Aeneas Portfolio amassed stakes of over 10% in the four counters in 4 (four) stocks, including Iris Corporation (IRIS, stock-code : 0010), Farm’s Best (FARMBES : stock-code 9776), MoBif Bhd (stock-code : 0042) and Kosmo Technology (stock-code : 9636)before the shares collapsed after regulators began probing, prompting Deutsche Bank AG to demand repayment of loans that finance the trades.

What could be the reason for this run-up? Could it be a real stock-price catch-up since the KLCI bullish started recently? Could it be another speculative play? Or to think out of the box, it could be a target for another M&A (merger & acquisition) since its’ the buzzword lately in the financial market.

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