Thursday, July 24, 2014

DRBHCOM & MMCCORP: Good Entry Point!

The Nathan's Hot Dog Eating Contest is an annual American competitive eating competition held each year on July 4 at Nathan's Famous Corporation's restaurant in Coney Island, New York. (Source: Wikipedia)

In the past few years, Corporate Malaysia has its own version of the Hot Dog Eating Contest and we all know who has been the runaway winner every year. Lately, some of the companies under that group has not been doing too well.  

I listed here 2 such stocks that have declined to a level that you may consider buying. The first stock is DRBHCOM which is resting at the uptrend line support at RM2.15-2.20.

Chart 1: DRBHCOM's weekly chart as at July 21, 2014 (Source: Tradesignum)

The second stock is MMCCORP which is testing at the horizontal line support at RM2.30.

Chart 2: MMCCorp's weekly chart as at July 21, 2014 (Source: Tradesignum)

I believe that both DRBHCOM & MMCCORP should be able to rebound from their respective support level.

If  you share my technical take on DRBHCOM & MMCCORP, you can buy into these stocks. Hopefully your investment will perform like a champion!

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, DRBHCOM & MMCCORP.


富升 said...

I have MMC with me.

May I know how do you see MMC in terms of thier fundamental? Is it good?

Alex Lu said...

Hi 富升

I have not studied MMC from a fundamental angle. If you looked at the FY13 results, you would notice a sharp drop in revenue & NP.

In FY13, MMC’s revenue dropped 19.1% y-o-y due to the deconsolidation of Gas Malaysia Berhad (“GMB”) results post listing in June 2012 coupled with lower contribution from Malakoff.

Its NP dropped 85.6% y-o-y due to the absence of gain on GMB listing amounting to RM1,011.5 million coupled with lower contribution from Malakoff.

Its gearing is very high as it includes the borrowings to finance the plant & equipment in Malakoff. If Malakoff is listed on Bursa, this 'weak' financial position will improve.

Ivan said...

Good day Alex,

What is your view on MMC ? TQ