Thursday, October 11, 2012

LBS- uptrend to continue

LBS is likely to continue with its uptrend after breaking above its recent high of RM0.89. In the past, this stock will rally in the same fashion after breaking its recent high (in December 2009 & June 2011). Its target is probably the line connecting the previous peaks (at about RM1.05).

LBS is a profitable property developer, which reported a net profit of RM19.5 million on revenue of RM239 million for 1H2012 ended 30/6/2012. Its annualized EPS for FY2012 is about 10 sen, Thus the stock is trading at PE of about 10 times. as such, the stock is deemed fully valued.

Despite the full valuation, LBS looks promising after its bullish breakout.

Chart: LBS's daily chart as at Oct 11, 2012_4.50pm (Source: Quickcharts)

In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, LBS.

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