Gtronic has broken above its downtrend line at RM1.10-1.12 yesterday. If this breakout can recruit sufficient buying interest, we may see the beginning of an uptrend for the stock. Its immeidate resistance is the horizontal line RM1.18 & then RM1.25.
Chart 1: Gtronic's daily chart as at April 7, 2011 (Source: Quickcharts)
Recent Financial Results
Gtronic's top-line & bottom-line took a dip in QE31/12/2010 (which happened to Unisem as well).
Table 1: Gtronic's last 8 quarterly results
Chart 1: Gtronic's last 16 quarterly results
Valuation
When compared to the other 2 big semicon players in the market, Gtronic has the highest PE (10.2 times) but it gives the highest dividend yield (5.9%).
Table 2: Gtronic, MPI & Unisem's valuation compared
Conclusion
Based on technical consideration, Gtronic could be a good trading BUY.
7 comments:
hi,
how would the auto supply disruption in Japan affecting local auto parts suppliers like TSM?
is the situation in Japan creating opportunity for these local parts supplier to fill in?
thanks
maxwealth88
eksons looks bullish too. whats yer take technically. care to post some charts?
Thanks for the update on the semicon industry as requested previously. Your charts are very helpful in helping make decisions. Looking good for gtronics for me. Bought a whole lot at 1.06. Hopefully it can break above the psychological barrier at 1.25
I realise you are using quick chart for your chart. Is it a free software? Pls give more info.
TQ
Hi Welcome to my life!!
Quickcharts Version 4 Build 388 is provided to Kenanga'e remisiers by N2N. N2N also provided a different version (called Trader Connect) to the internet trading clients of other firms, such as M&A, Arab-Malaysia, CIMB, HDBS, TA and Affin. Check with your broker what is made available to you.
Hi MaxWealth88
I am not sure how the auto supply disruption in Japan would affect similar companies in Malaysia. My guess is that if you sell to the replacement market, the impact is either negligible or positive. On the other hand, if you sell more to the OEM market, the customers (or OEM clients) may encounter production disruption & as such the demand for your products may reduce.
Hi Wedding Gifts,
At the time of your posting this comment, Eksons looked positive. At the time of my posting this comment, it has turned negative. It may have broken below the uptrend line support at RM1.40-1.42 on April 15. An attempt to climb back above the uptrend line failed on April 18 when the share price hit the support-turned-resistance of the uptrend line at RM1.43 & faltered.
FYI the prices of lumber [as traded on CME] has dropped sharply since early April. Go here . While this lumber may not be the same as tropical hardwood, I believe that the substitution effect may kick in and pull down the price of tropical hardwood products.
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