This is a personal weblog, reflecting my personal views and not the views of anyone or any organization, which I may be affiliated to. All information provided here, including recommendations (if any), should be treated for informational purposes only. The author should not be held liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.
Friday, May 10, 2013
MNRB- finally broke above its RM3.20 horizontal resistance
Technical Outlook
MNRB has broken above the rising 'horizontal line' (AB) at RM3.20 which has capped its advances for the past 4 years. With this breakout, MNRB could enter into an upleg, with next resistance at RM3.60 & RM4.00. Indicators are supportive of an upside move.
Chart 1: MNRB's monthly chart as at May 10, 2013_12.30pm (Source: quickcharts)
Recent Financial Result
Its latest financial result in QE31/12/2012 shows MNRB reported a net profit of RM59 million, a turnaround a net loss of RM12 million incurred in the preceding quarter (QE30/9/2012). This was attributable to an improvement in the claims experience of the Group's reinsurance subsidiary.
Table: MNRB's last 10 quarterly results
Chart 1: Tienwah's last 25 quarterly results
Valuation
MNRB (at RM3.37 as at 3.45pm) is now trading at a PE of 5.2 times (based on last 4 quarters' EPS of 65.2 sen). At this PE, MNRB is deemed very attractive.
Conclusion
Based on satisfactory financial performance, attractive valuation & positive technical outlook, MNRB could be a good stock for long-term investment.
Note:
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, MNRB.
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