Friday, July 18, 2014

Cresbld: Bullish breakout!

Cresbld has just broken above its horizontal resistance at RM1.58-1.60. With this breakout, the stock is expected to continue with its prior uptrend.

The bullish outlook for the stock is shared by Cresbld-WB, which broke above its downtrend line at RM0.65. At the time of writing, Cresbld & Cresbld-WB were trading at RM1.63 & RM0.695, respectively.

  Chart 1: Cresbld's weekly chart as at July 17, 2014 (Source: Tradesignum)

Chart 2: Cresbld-WB's weekly chart as at July 17, 2014 (Source: Tradesignum)

A look at the 10-year financial performance shows that Cresbld is a profitable company. It suffered a sharp drop in revenue in FY2013 due to the completion of certain projects that carried high material cost. With EPS of 32.6 sen for FY13, Cresbld (at RM1.63 now) has a trailing PE of 4.5 times. At this PER, the stock is deemed inexpensive.

The only concern is its high receivable figure of RM191 million as at 31/3/2014. Based on a revenue of RM223 million,  Cresbld's debtors' collection period stood at 312 days.

Chart 3: Cresbld's last 10 years' result  (Source: Equities Tracker)

Based on technical breakout alone, Cresbld could be a trading BUY.

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, Cresbld.


Andres Kwan said...

Hi Alex, do u hav post for Guoco. Could you share your thought of this share. Tq.

Alex Lu said...

Hi Andres Kwan

Guoco may have broken above a 5-year trading range at RM1.50, the technical outlook is fairly bullish.

Its next resistance level are RM1.65, RM1.80, RM2.00 & RM2.40.