Latitud recovery could begin?

Latitud has just announced its results for 2Q2008 ended 31/12/2007. For that quarter, Latitud reported a net profit of RM4.1 million as compared to a loss of RM271k recorded in the immediately preceding quarter. The turnaround was due to recovery in the results of its Malaysian operations and lower losses recorded by its Thailand operations.



Latitud (closed at RM1.27 as at Feb 27) is now trading at a PE of 8 times (using the annualized EPS of 15.7 sen) or at a Price to Book of 0.5 times (using a NTA per share of RM2.48 as at 31/12/007). Thus, Latitud is deemed inexpensive at these multiples.

Chartwise, Latitud appears to be bottoming out at the present price level of RM1.20-30. There is no sign yet that the stock will be reversing upwards anytime soon.


Chart: Latitud's daily chart as at February 27, 2008 (courtesy of Quickcharts)

Based on improving performance, Latitud is good for slow accumulation. I had noted earlier that the stock is a laggard (go here). A better categorization is that the stock is a possible contrary play.