What is pushing Cosco Corporation's stock price upwards
Cosco Corporation Limited, a China company listed in Singapore mainboard, Straits Times Index, STI had pulled a very remarkable rebound since it low at about 60 plus cents not too long ago and it does seems from the look of the buying momentum that Cosco is going towards $2 soon.
I have previously gave a review on Cosco sometime back in October 2008 and the topic then was "Will Cosco Corporation Ltd recover?".
So what may be the underlying reason for Cosco to have recovered so much to close at $1.110 with a one day gain of $0.160 on Straits Times Index, STI (Singapore) on 10 December 2008. In fact Cosco is enjoying a 2 days consecutive gain. Well, you can say it is due to positive sentiment around Asia markets, but could it be so much?
According to broking sources, there has been rumour that Cosco (F83.SG), the China-Based shipbuilder is in talk with Brazilian oil giant Petrobras for potential ship building orders. No response from Petrobras as yet and the investment relation manager had that Cosco have not come to a point to disclose information regarding this matter. From the look of how Cosco had made its gain, a 34 percent increase since start of December 2008. Many proprietary traders really love this stock and it has been so much of a hit that people are actually calm ahead of bad news. Analyst gathered that a 70-day MA (Moving Average) of around SGD$1.17 expected to be the resistance for this Straits Times Index, STI mainboard listed stock.
My personal view however is that this stock used to be more than SGD$6 and this is not the deemed value of Cosco. The potential is really there for this counter. My personal take is that it will easily hit $3 by Chinese New Year 2009.
The above are of personal opinion and never at all an inducement to trade or buy any stocks or equity counters.
Tags: Cosco , Cosco Corporation , Cosco Rumour , Cosco Recovering , Cosco Going Up , Petrobras , STI , Straits Times Index , STI Rally
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