Wednesday, February 8, 2012

Interra Resources

Interra Resources: UOB Kay Hian recently met up with the mgt of Interra Resources.
Note that Interra is an energy exploration and production (E&P) Co. in Myanmar and Indonesia. The share price had a spectacular run in Jan-Feb 12, gaining close to three-fold from the low of 0.88 S cents/ share in Nov 11.

In house view, this is largely due to a macroeconomic change in the political scene in Myanmar, including the recent release of political prisoners by the government, the historic visit by the US Secretary of State Hillary Clinton and the lifting of investment restrictions on Myanmar by several countries.

On the weekly chart the stock has broken the downtrend resistance line. Think the trading range is likely to be between S$0.185 and S$0.28 with an immediate resistance at $0.24. Prices are likely to retrace as the stock could be overbought for now.

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