Maybulk's bottomline up, due to ships sale

Maybulk has just announced its results for 2Q2008 ended 30/6/2008. Its net profit increased by 141% q-o-q or 71% y-o-y to RM222 million, while its turnover increased by 3% q-o-q or 27% y-o-y to RM186 million. The increase in net profit was attributable to gain of RM144 million from the sale of a bulker & a tanker. Excluding this gain, Maybulk's pre-tax profit from normal operation has dropped by about 17% q-o-q & 24% y-o-y.



Maybulk, which tested its long-term uptrend line support at RM3.36 a few days ago, has closed at RM3.52 at the end of the morning session today. As noted, Maybulk has a strong horizontal support at RM3.50 (see Chart 1 below).


Chart 1: Maybulk's weekly chart as at August 20th (source: Quickcharts)

With the shipping rates rebounding slightly (see the BDI chart, Chart 2 below), Maybulk's share price should be able to hold onto the horizontal support of RM3.50. If the BDI were to inch up again, Maybulk's share price could move higher. Its immediate resistance will come from the overhead medium-term downtrend line (presently at RM4.00 level).


Chart 2: Baltic Dry Index's daily chart as at August 20th (source: InvestmentTools.com)

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This is the earlier table, with errors noted thereon. I like to thank "ramatex", the commenter who pointed out the earlier mistake.