Monday, August 10, 2009

Supermx breaking above its expanding triangle

This stock has risen from RM1.00 in early April to a high of RM3.03 today. From the chart below, you can see that Supermx's share price has broken above the expanded triangle in the past 5-6 years, with the breakout level at RM2.90. This could signal further upside for this stock. On the other hand, if the breakout could not sustain & fell below RM2.90, a correction could set in.


Chart: Supermx's daily chart as at August 7, 2009 (Source: Quickchart)

From the 8 quarterly results are appended below, you can see that Supermx's last 4 quarters' EPS amounted to 30 sen. Based on this, Supermx is now trading at a trailing PE of 10 times only.



Based on continued strong demand for rubber glove, we can expect Supermx's good performance to sustain for the next few quarters. With its inexpensive valuation and the present technical breakout, we can expect Supermx's uptrend to continue. However, a correction could set in if the share price dropped back below the breakout level of RM2.90.

4 comments:

cheer said...

What is the resistance for Latexx, Kossan, Ruberex

cheer said...

You have comment on the Supermx on its Technical Analysis, how abt the Latexx n Kossan?

cheer said...

Additional question, what happen to Latexx which hit more than RM12 in year 1999/2000 n history never repeat ?

Alex Lu said...

Hi Cheer,

Latexx at RM12.00? The good old days... or shall I say the bad old days. If I am not wrong, Latexx was a 2nd Board counter. It might have benefited from a play by a syndicated pool. I think one should aim for RM2.35-2.50 level as the near-term objective. Similarly, for Kossan, you may aim for RM4.80-5.00.