Tags: Eight Capital | First Resources

WRITTEN BY DOW JONES & CO, INC

THURSDAY, 20 JANUARY 2011 10:10

Share this  Digg  Del.icio.us  StumbleUpon  Netscape  Yahoo  Technorati  Googlize this  Facebook Export PDF Print E-mail First Resources (EB5.SG) falls 8.1% to $1.48 after major shareholder Eight Capital sells 75 million ordinary shares and Citigroup places 15 million treasury shares held by the company at $1.48 each.  Eight Capital says the placement is to improve the stock’s free float, and that it remains committed to First as a substantial shareholder. An analyst at a local brokerage says “it’s quite expected that the market will react negatively. The price has come down quite significantly, so I think it probably presents a buying opportunity for investors. Even at yesterday’s close of $1.61, it was trading at 13X our earnings estimates, now its even lower so it does look interesting for those who haven’t got exposure to the sector.”    The analyst notes the stock’s recent gains are in tandem with rising CPO prices; “our house view is that (CPO) prices will hold up over the next couple of quarters...as an upstream player, that should reflect well on its earnings.”    Orderbook suggests $1.47 likely floor today.

GAR at this price is inexpensive.

But if there is really some bad news privy to these traders, then the stop loss at 0.73 will protect my capital.

So its all right. 

Just read your posting on your Gar entry.

Thanks.

Thank Gaecia!

  Yes, I am watching the 3220 line like a hawk.

  Any break below 3220 will send the STI diving downwards. 

Hi BT

Welcome back to this thread.

In need your advice on Gar. Is the current price considered very low and good time to buy?

Besides Gar, what about Noble as it has retraced too.

Thanks for the advice.  

welcome back dude.

Would u not rule out the possibility of Sti retesting this support line?

hey BT,

I am very happy when u are back....