ABA - Potential Short Term Trading Buy

Abacus Consolidated Resources (ticker: ABA) closed at Php 0.79/share today, Jan. 31, 2012, up by 5.33% from it's previous close at Php 0.76. It bounced from it's 3 months downtrend support at 0.75 bringing it with a potential upside of 14% or 0.12/ share if it hits its resistance at 0.87 (target price taken from the projected resistance level of the preceding 3 month lowering top trend). Based on it's current momentum, the target price could be hit within the next month. Watch out for the MACD-line-crossover to confirm the short term reversal.

With the stock in the oversold territory, there is a potential trading buy at 0.76-0.77 with a sell stop loss order at 0.74. Furthermore, given today's substantial gain, we can expect the price to drop slightly tomorrow. This may make it a good initial entry point for aggressive traders.

Disclosure:
I have ABA in my portfolio.

TANDUAY HOLDINGS, INC (TDY) Secondary Offering

Cheers to those who subscribed to TDY’s secondary offering! 

With your funding, Tanduay, which has brands across all major liquor categories - rum, gin, brandy, vodka and whiskey - will utilize the proceeds “for the expansion, improvement and rationalization of its various plants in Negros, Cabuyao and Quezon as well as the upgrade of its facilities in Batangas…, all of these are targeted to improve manufacturing and production capacity” (Accord Capital).

According to researchers at Citiseconline, “the new investments will allow Tanduay to expand capacity to 192,800 cases/day from 158,800 cases/day (bold and italics mine) and reduce costs by as much as Php849Mil annually”.