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Thursday, August 07, 2014

Taliwrk: Finally, the uptrend continues... I think

Taliworks Corporation is involved in water treatment, waste management, highway concession and construction.

Unlike most stocks that have recovered after the US Financial Crisis, Taliwrk's recovery only began in 2013. See Chart 1 & 2.

Chart 1: Taliwrk's monthly chart as at Aug 6, 2014 (Source: Chartnexus)

Chart 2: Taliwrk's weekly chart as at Aug 6, 2014 (Source: Tradesignum)

Despite the late start, Taliwrk does not seem to be any hurry to rise up. From the low of RM0.75 in April 2013, the stock rose to a high of RM1.25 a few times. The RM1.25 mark has capped the stock for a good 12 months- until today. See Chart 3.

Chart 3: Taliwrk's daily chart as at Aug 6, 2014 (Source: Tradesignum)

Today, Taliwrk broke above the RM1.25 horizontal line. This bullish breakout signals that the stock is likely to continue its tepid uptrend. Currently, the stock is trading at RM1.35.

Taliwrk's financial performance & position over the past 10 years can only be described as unexciting. We can see that Taliwrk's top-line is on a hesitating upward trajectory while its bottom-line is rather flattish.


Chart 4: Taliwrk's last 10-year P&L (Source: Equities Tracker)

Its financial position is deemed fairly satisfactory, with high current ratio (due to high receivables) and elevated gearing ratio.


Chart 5: Taliwrk's Current & Gearig Ratios over the last 10-year (Source: Equities Tracker)

With the water theme play now on full bloom, it's somewhat surprising that punters gave this stock a miss. Well, better late and never, they say. Let's see whether the investors who sold this stock in 2010-2012 knew something that those who bought in 2013-2014 did not.

Based on technical consideration, Taliwrk could be a good trading BUY.

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, Taliwrk.

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