BJFood has broken above its intermediate downtrend line, RR at RM1.80. If the stock can stay above the breakout level, the next upleg may soon begin. Note that MACD is now above the zero line and +DMI is above -DMI (indicating possible uptrend).
Chart 1:BJFood's weekly chart as at Mar 10, 2017 (Source: MalaysiaStock.biz)
Chart 2: BJFood's monthly chart as at Mar 10, 2017 (Source: MalaysiaStock.biz)
The latest available result for BJFood is for QE31/10/2016, where its net profit rose 1% q-o-q but dropped by 19% y-o-y to RM5 million while revenue rose 5% q-o-q or 10% y-o-y to RM149 million.
Table: BJFood's last 8 quarterly results
Graph: BJFood's last 28 quarterly results (Note: The sharp spike in earnings was due to the extraordinary gain of RM158.6 million recorded in QE31/10/2014)
BJFood (closed at RM1.96 last Friday) is now trading at a PE of 35 times (based on last 4 quarters' EPS of 5.68 sen. At this PER, BJFood is deemed overvalued.
Based on improving financial performance & mildly positive technical outlook, BJFood' rating is now revised from a SELL to a HOLD.
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