Table: Latitud's 8 quarterly results
Graph: Latitud's P&L for last 61 quarterly results
As at 30/9/2020, Latitud's financial position is deemed healthy with current ratio at 2.1x and gearing ratio at 0.5x.
Latitud (closed at RM3.94 last Friday) is now trading at a trailing PER of 16 times (based on last 4 quarters' EPS of 24.32 sen). While the PER looks fairly reasonable and possibly fully valued the earnings of the last 4 quarters, it must be pointed out that the recovery in earnings has just begun. If Latitud can achieve the same level of earnings in the next few quarters, similar to QE30/9/2020, then its PER will drop to 7 times. This would make the stock exceptionally attractive.
Latitud has broken above its downtrend line RR at RM2.50 in October. Its immediate resistance is at the horizontal line at RM4.00.
Chart: Latitud's monthly chart as atNov 27, 2020 (Source: Malaysiastock.biz)
Based on good financial performance & position, fair valuation and bullish technical outlook, Latitud is a good stock for long-term investment.
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