Oldtown- may have a bullish breakout

Oldtown was listed on the exchange on July 13. Its IPO price was at RM1.25. For QE30/9/2011, Oldtown reported a net profit of RM8.9 million on turnover of RM73 million. For more, go here. With an outstanding shares of 330 million, Oldtown's annualized EPS is about 11 sen. Based on current price of RM1.18, the stock is trading at a PE of 11 times.

Oldtown broke above its ascending triangle at RM1.15 today. With this upside breakout, Oldtown is expected to continue with the prior uptrend. Its next resistance is at RM1.20.

Based on this technical breakout, Oldtown could be a good trading stock or even a medium-term investment.


Chart: Oldtown's daily chart as at Dec 29, 2011_9.30am (Source: Quickcharts)