Table: Unisem's last 8 quarterly results
From the graph below, we can see that both revenue & profits are at the high for the past 12 years. Its failure to report a higher pre-tax profit and a net profit for QE31/12/2016 as compared to QE31/12/2015 could be an indication that earning has peaked.
Graph: Unisem's last 49 quarterly results
Unisem (closed at RM2.77 at end of the morning session) is now trading at a PE of 13 times (based on last 4 quarters' EPS of 22.12 sen). At this multiple, Unisem - a cyclical stock - is deemed fairly valued.
Unisem is in an uptrend line, SS. Its upside is capped by the line connecting the recent peaks, with resistance at RM2.80.
Chart: Unisem's weekly chart as at Feb 23, 2017_15.00 (Source: MalaysiaStock.Biz)
Based on good financial performance, fair valuation valuation and still positive technical outlook, Unisem remains a good stock for medium-term investment. Its inability to report a higher quarterly earning could be an early sign that its earning has peaked. It may be a good idea to take profit by SELLING INTO STRENGTH at prices above RM2.70.