Tuesday, July 01, 2014

Sign: Poised to take off!

Sign may have broken to the upside of its symmetrical triangle at RM1.50. If it can surpass the recent high of RM1.59 recorded in October 2013, the stock could take off. Even if it failed to clear the RM1.59 resistance, the stock has clearly shown its intention of going higher. (as at 12.25pm, Sign was trading at RM1.60).

Based on bullish technical breakout, Sign could be a good trading BUY.

Chart: Sign's weekly chart as at Jun 30, 2014 (Source: Tradesignum)
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, Sign.


xxx said...

Hi Alex, do you think Gadang chart looks like almost in the same position as well?

Alex Lu said...

Hi xxx

Gadang has run up a lot. To go higher, you need another catalyst.

I have seen Apex's report in November 2013 which valued the stock at RM1.43. It was trading at RM0.945.

In April 2014, Kenanga valued it at RM2.00 when it was at RM1.94. It opined that all the positives have been priced in. I agreed with that opinion.

lai said...

Hi Alex,

Perhaps Melati or Econpile a better bet?


Alex Lu said...

Hi lai,

It is too easy to comment on Econpile.

As for Melati, it is a profitable company. EPS is about 14 sen. This means that the stock, at RM1.51, is trading at a PE of about 11x. PB is about 1.1x.

However, Melati is subject to erratic swing. Sharp rallies that were followed by long bouts of correction. Since the stock has rallied quite a bit in the past 2-3 months, you have to be a bit cautious with this stock.