Paramon: New All-time High

Paramon has been in the news lately. In early June, Malaysian Insider featured a short article on the company where it expects to "achieve its RM600 million property sales target within the next three years, capitalising on existing projects and RM2 billion worth of bids". The latter "includes a bid under the Employees Provident Fund's Kwasa Damansara project in Sungai Buloh, Selangor". For more, go here.

 
This was follow-up by a report from RHB entitled "On the Path of Value Discovery". The full report is available in klse13investor (here).  RHB valued Paramon at RM2.40 based on 40% discount to property RNAV and a 20% holding company discount.

Chartwise, we can see that Paramon has recently surpassed its all-time high of RM1.95 recorded in June 2011. Today it has surpassed the psychological RM2.00 mark. The current rally is the third time that this stock has surpassed its overhead resistance (posed by a slanting line connecting recent highs). In previous instances, the stock surged upward by 50-120%. If the current breakout can enjoy an upward surge of 50%, the share price may move to RM2.55.

 
Chart: Paramon's monthy chart as at Jun 24, 2015_4.00pm (Source: ShareInvestor)

 Financial performance has been satisfactory albeit flattish. 


 Diagram: Paramon's last 10 quarterly P&L & CF (Source: ShareInvestor)

Based on bullish technical breakout, Paramon could be a good stock for 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, Paramon.