Zelan’s share price plunged another 7 sen after it announced that its CEO cum founder, Albert Chang, would not be renewed for his employment contract. Zelan’s price has been pressed lower for nine continuous trading sessions since it was plagued by bad news. On Friday, it closed at 80 sen.
However, some Fund Managers view that at 80 sen, one is almost getting Zelan’s share free if taking into consideration of its potential earning for year 2009. Fund Managers estimate Zelan will make approximately 90 sen per share in year 2009. Further to this, Zelan’s net cash, current investment and IJM stakes would worth about 57 sen per share which representing about 66% of the present share price.
Market also tips MMC might inject MMC Engineering into Zelan. MMC Eng is the partner of Gamuda in the Smart project and Double-tracking project.
Based on charts, Zelan has been grossly oversold and possible for a technical rebound. Its next strong support should be at 0.75 if price been pressed lower. Since the major market might stage a rebound on Monday, the downswing looks unlikely. Its resistances are 0.87 and 0.92.
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