Perstima has just announced its results for QE30/9/2010. Its net profit increased by 3.7% y-o-y to RM21.2 million on the back of a 6.0%-increase in turnover to RM217 million. When compared to the immediate preceding quarter (QE30/6/2010), net profit declined by 12.8% despite a 7.2%-increase in turnover.
Table: Perstima's last 8 quarterly results
Chart 1: Perstima's last 24 quarterly results
Valuation
Based on current price of RM5.20, Perstima is trading at a trailing PE of 5.6 times. At this multiple, Perstima is deemed attractive.
Technical Outlook
Perstima has just broken above its recent high of RM5.12 but on thin volume (see Chart 2 below). The stock is now entering into a heavily-congested area, with multiple resistance levels. However, if we use the line connecting its multi-year peaks, it is possible to see that this stock may retest this line at RM6.30-6.40.
Chart 2: Perstima's daily chart as at Nov 3, 2010_9.10am (Source: Quickcharts)
Chart 3: Perstima's monthly chart as at Oct 30, 2010 (Source: Tradesignum)
Conclusion
Based on attractive valuation & technical breakout, Perstima could be a good trading BUY. Nevertheless, you should take some precaution by placing protective stops since the stock has risen quite substantially in the past 18 months. A good cut loss level would be the 20-week SMA line at RM4.80.
17 comments:
Dear Alex,
Please kindly comment for Sunway.
Now RM2.08. Can be up again?
Thank you
Dear Alex,
Please kindly comment for Sunway.
Now RM2.08. Can be up again?
Thank you
Hi Ethan,
Sunway finally broke above the trading range of RM1.95-2.00 (for the past one month). It nearly tested its Nov 2007 high of RM2.16. If it can break above the RM2.16 level, I think it would go to RM2.40 (the line that connects the previous 2 peaks in 2004 & 2007) and may be even testing its 1999-2000 high of RM3.00. The indicators are positive & I think the chance of going beyond RM2.16 is fairly good.
Good luck.
Dear Alex,
Any comments on MBM Resources?
The company has net cash of RM160 million++ but the share price has been diwndling with low volume.
Thanks.
Dear Alex,
Wht's yr take on Masterskill?
Can consider investing in this stock since it has corrected recently? Or technically can fall further?
Tq. for yr comments.
Hi TRULY MALAYSIAN
MBMR is testing the psychological RM3.00 support. If this support failed, it may test its accelerated uptrend line support at RM2.90. This also coincides with a strong horizontal line support.
If the RM2.90 support level is violated, the stock may drop to the horizontal support RM2.50-2.60 level.
I believe MBMR should be able to right itself at the RM2.90-3.00 level.
Hi Seong Wai
I don't know what is erring Masterskill or MEGB. I am only guided by technical analysis which tells me to be very careful with this stock.
Hi Alex, what is your view on Perak Corp? This stock links to perak government like MJPerak and it has attractive PE and good NTA of RM4.
Dear Alex,
Hi.Auto sectors seem to focus on hybrid/ ECar. I have a hunch that lithium batteries based co would have a beautiful future.DRB-VW, Proton all steering towards hybrid/EC.
Look forward to hear about Fitters from you.
Thanks. Good day.
and Smiscor too. Thanks.
Alex,
Please give your opinions regarding current trend of TAGB. Thanks in advance.
Hi alex, what is your opinion for QL? it keep climbing up everyday, is it overvalue or it still got growth potential?
alex..do u think petchem book building for institution can beat over 20% of bidding?
better go for IPO or book building?????thank!!!
Hi. Can comment a bit on Paramon? What is it break RM5.00, highest close for at least 10 years. Thanks
hi alex, kindly comment on fitter stock.
thanks
It would probably not deliver satisfactory results in this quarter as its Vietnam operation may suffer foreign exchange losses due to large gap between official market and black market of VND against USD. Many firms are forced to pay extra 10% to buy USD for making payment of material imported overseas. It's rather difficult to pass on the additional costs to customers especially for those relying heavily on Vietnam market.
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