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.
Thursday, July 04, 2013
Gtronic- Uptrend to continue
Technical Outlook
Gtronic broke above its horizontal resistance at RM2.20 on Monday. With this upside breakout, Gtronic is continuing on its uptrend.
Chart 1: Gtronic's daily chart as at July 4, 2013_9.15am (Source: Quickcharts)
Recent Financial Result
Gtronic's financial performance is deemed satisfactory for the past few quarters, albeit a dip in both top-line and bottom-line in QE31/3/2013. The profit margin at 13-14% is very encouraging as the company is deriving more businesses from the manufacture and sales of chip carrier quartz crystal products and optoelectronic products which carry higher profit margin.
Table 1: Gtronic's last 8 quarterly results
Chart 1: Gtronic's last 25 quarterly results
Valuation
Gtronic (closed at RM2.32 yesterday) is now trading at a PE of 13.6 times (based on last 4 quarters' EPS of 17 sen). At that PE mulitple, Gtronic is deemed fairly valued.
Conclusion
Based on good financial performance, Gtronic could be a good stock for long-term investment. Its upside potential is limited as it is trading at fair valuation. However, its technical outlook is bullish and that may justify a rating of a trading BUY for now.
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, Gtronic.
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