Spritzer Bhd ('Spritzr') is involved in the manufacturing and distribution of natural mineral water, sparkling natural mineral water, distilled drinking water, carbonated fruit flavoured water, carbonated fruit flavour isotonic water, teas, toothbrushes, preforms and packaging bottles.
I posted on this stock in September last year, which was entitled "Spritzr- a not-so fizzy stock". Well, it is bubbling up now.
Recent Financial Results
For QE28/2/2010, Spritzr's net profit increased by 1.7% q-o-q or 32% y-o-y to RM3.2 million while its turnover increased by 10.0% q-o-q or 17% y-o-y to RM32.5 million.
Table 1: Spritzr's last 8 quarterly results
Chart 1: Spritzr's 15 quarterly results
Valuation
Spritzr (at RM1.15 as at 4.30pm today) is now trading at a PER of 13 times (based on last 4 quarters' EPS of 8.7 sen. Due to its strong growth over the past few quarters, Spritzr could easily trade at a PER of 15 times. At a PER of 15 times, Spritzr would command a fair value of RM1.30.
Technical Outlook
Spritzr broke above its recent high of RM1.05 (after a few attempts). With this breakout, Spritzr could continue with its prior uptrend.
Chart 2: Spritzr's daily chart as at May 14, 2010 (Source: Quickcharts)
Chart 3: Spritzr's monthly chart as at May 3, 2010 (Source: Tradesignum)
Conclusion
Based on good financial performance, reasonable valuation & further technical breakout, Spritzr could be a good trading BUY.
10 comments:
hi alex,
u suggested ltkm as a medium term. since now ltkm bullish do u think the TP will be above 2.0 or profit taking?
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Alex,
Spritzer is bubbling b'coz it is related to Yee Lee whom had a fine run-up lately...
Hi ryan,
I think it is a good time to take some profit on LTKM. If we draw a line connecting the 'highs' since October last year, that line could act as a resistance to the uptrend. That resistance is now at RM1.80.
Hi surewin1woh,
If that's the reason for the rally, then it may sustain. I think it could be more than that.
Good day Alex,
The sleeping giant is still sleeping and it need a David to awake him??
This stock called Suiwah, how you perceive it technically and as a company?
Cheers.
Hi solomon,
Using a log scale weekly chart, one can see Suiwah may have broken above the long-term downtrend line that stretches back to early 2000. The breakout level is at RM1.60-65. Presently, Suiwah is trading at RM1.67.
Hi Alex ,
Do you think Spritzr can still go further after yesterday's rally.
Hi Stephanie,
Spritzr broke above the horizontal resistance at RM1.05. As long as it can stay above the RM1.05 level, the breakout is still valid & upside potential is there.
Thanks Alex. Do you think BJToto can go above 4.5
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