BUY: ILB Bullish Breakout

ILB has made a bullish breakout from its long term resistance at RM 2.00. This resistance extends for more than a year & it took 10 attempts before it broke out today (See first chart points A, B & C). Volume is not very high because the breakout happened after 4 pm. It closed at the high of 2.08.

It has also formed a nice rising channel from late January (See second chart) & breakout happened at the lower channel line & right on the resistance level. Prices are above the 10, 21, 30 & 50-day moving averages. RSI & MACD are positive.

Resistances are at 2.20 & 2.40 (weak) and strong resistance at 3.00.

Target price for ILB is 2.95 (just below the strong resistance) giving a 41% return.

ILB is a very well managed company and its logistic business is growing very fast in China. So fundamentally its prices will be well supported.

The warrants are currently trading at an 8% discount to the mother share at 0.86 but it is thinly traded & expires on 9 March 2007 (249 days only). The exercise price is 1.05. Buy the warrant for potential 100% plus gains as the target price is 1.90 (assuming almost zero discount/premium to the mother share).

Cutloss is 2.00 for the mother share and 0.80 for the warrant.