MYEG- may have a bullish breakout

For 1Q2012 ended 30/9/2011, MYEG's net profit increased from RM2.8 million to RM5.4 million due to higher revenue, driven by growth from the online renewal of auto insurance, road tax transactions and its related services. Its revenue grew 18.2% to RM14.2 million from RM12 million previously due to the deployment of more e-service kiosks and the introduction of new cloud computing-based services. The number of kiosks has increased from 345 in the previous financial year to 495 as at end-June 2011.

MYEG has also announced on Nov 30 that it has a new substantial institutional shareholder. Mawer Investment Management Ltd of Canada had acquired 32.345 million shares in the company, which represents an interest of 5.39% in the company.

This morning, MYEG broke above its intermediate downtrend line (RR) at RM0.63. Its immediate resistance is at RM0.65 & then at RM0.68. Based on this technical breakout, MYEG could be a good trading BUY.


Chart: MYEG's daily chart as at Dec 2, 2011_10.30am (Source: Quickhcharts)