The stock had broken below its accelerated uptrend line support at RM4.10 in late February this year. The share price dropped sharply to hit a low of RM2.69 on March 19th (compared to a high of RM4.92 on January 14th). The share price has recovered over the past few days to close at RM3.10 yesterday. At 10.00 am this morning, it is at RM3.30.
The immediate horizontal support for this stock is at RM3.00 while the longer term uptrend line support is at RM2.50. The immediate horizontal resistance is RM3.60.
For the FYE31/12/2007, MMC reported a net profit of RM187 million on a turnover of RM1.845 billion. At the present price of RM3.30, MMC is trading at a PE of 9.1 times (based on 2007EPS of 36.2 sen) or at a P/Book of 0.9 times (based on NTA per share of RM3.85 as at 31/12/2007).
I believe that MMC could be a good BUY for the medium-term if the share price were to ease back to RM3.00-10.
Chart: MMCCorp's weekly chart as at March 25, 2008 (courtesy of Quickcharts)
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