Based on its closing price of RM7.20 as at December 21 & its last 4 quarters' EPS totaling 58.0 sen, UMcca is now trading at a trailing PE of 12.4 times. I believe that there is still further upside of about 15-20% to this stock in the medium-term.
The share price of UMcca has been rising in a steady uptrend until mid-August 2007. Then, it went on a sharp rise- riding on the crest of a boom in the price of CPO. From a low of RM4.88 in mid-August, the share rose to above RM7.00 today. In the short-term, one can expect a fair bit of volatility on this stock. Despite the potential upside in the stock, a correction of its sharp price gain cannot be ruled out.
Chart: UMcca's weekly chart as at December 21 (courtesy of Quickcharts)
Based on the good results, UMcca is still a BUY for the medium-term.
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