Table: Unisem's last 8 quarterly results
Graph: Unisem's last 54 quarterly results
Unisem (at RM1.80 as at 4.00pm) is now trading at a PE of 11 times (based on last 4 quarters' EPS of 16.4 sen). At this multiple, Unisem is deemed fairly valued. However we have to wrestle with the big question of whether Unisem's earning has peaked. If earning has peaked, then it will likely to continue to trend lower and so would the share price.
Unisem broke its long-term uptrend line, SS at RM2.60 in February. Today it even broke the psychological RM2.00 mark. the next support will be from horizontal lines at RM1.80 & RM1.60.
Chart: Unisem's monthly chart as at Apr 25, 2018_10.00am (Source: Shareinvestor.com)
Based on poor financial performance & bearish technical outlook, Unisem has become a stock in search of a bottom. Despite the sharp decline, we have to be careful when approaching this stock because it could have turned into a value trap in the event its earning has peaked.