Jobst has just announced its results for QE31/3/2010. Its net profit increased by 39% q-o-q or 53% y-o-y to RM8.7 million while turnover increased by 19% q-o-q or 27% y-o-y to RM27.6 million.
Table 1: Jobst's last 8 quarterly results
Chart 1: Jobst's 27 quarterly results
Valuation
Jobst (closed at RM2.03 yesterday) is now trading at a PER of 21 times (based on last 4 quarters' EPS of 9.6 sen). At this multiple, Jobst is deemed fairly valued.
Technical Outlook
From the daily chart (Chart 2), Jobst appears to be trapped in a symmetrical triangle ('ABC'). While the share price broke to the upside of that triangle yesterday, the breakout was on thin volume. It must also be noted that a breakout at the apex of a triangle (denoted as 'C') is prone to fail- be it an upside breakout or a downside breakout. From the weekly chart (Chart 3), we can see that Jobst had a sharp jump from RM1.45 to above RM2.00 over the past 3 months. As such, the stock is likely to continue to consolidate its recent gain before the next price movement is revealed.
Chart 2: Jobst's daily chart as at May 18, 2010 (Source: Tradesignum)
Chart 3: Jobst's weekly chart as at May 18, 2010 (Source: Tradesignum)
Conclusion
Based on continued improvement in its top-line & bottom-line, Jobst is a good stock for long-term investment. However, the stock may consolidate at the RM2.00 level for a while longer after its recent sharp rise.
8 comments:
Dear Alex,
CIMB drops to $7++,what happened? I didnt follow market for quite sometime. Good time for BUY? thanks.
Hi Layman,
CIMB has just gone ex for a 1-for-1 Bonus Issue. The adjusted price should be RM7.21.
CIMB has gone up a lot in the past 15 months. A good level for entry may be at RM6.30-50, which is the 200-day SMA line and the high recorded in 2007.
Dear Alex,
Thank you.
Do you follow any gas/energy counters? Is kencana a good fundamental counter worth following?
Dear alex,
sorry. one more question. Is the market considered turing bearish now???
Hi Alex Lu,
What do you think about cscsteel & tan chong motor?
is it the right time to get in now?
Have a nice day!
Regards,
Agnes
Hi Layman,
I think Oil & Gas stocks would be consolidating after the sharp drop in crude oil prices. Kencana may find support at RM1.50-55. If it breaks below that support level, the stock could be entering into a bearish phase.
The FBM-KLCI could be at a turning point. It is critical that it must hold above the 1300 level.
Hi Agnes,
I think about cscsteel & tan chong motor are good stocks. If the FBM-KLCI were to break below the 1300-1303 level, both of these stocks would drop further. A good entry level for cscsteel & tan chong are at RM1.70-80 and RM3.50-60, respectively. I know it looks a bit too ambitious but you never know. If you fear that you might miss out, then mark your buying price half way between these prices and the closing prices for today. Good luck.
HI alex,
Thanks alot!
I'm waiting tchong drop to that level in fact!
thanks for ur advice anyway :)
regards,
agnes
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