Thursday, March 11, 2010

Gtronic may have broken above its long-term downtrend line

Technical Breakout noted

Gtronic may have broken above its long-term downtrend line resistance at RM1.12-13. Its next resistance is at RM1.25 & thereafter at RM1.50.


Chart 1: Gtronic's monthly chart as at Mar 11, 2010 (Source: Tradesignum)

Recent Financial Results

Gtronic had recently announced its results for FYE31/12/2009, which shows a drop in net profit of 26.7% from RM21.8 million to RM15.9 million. Turnover had similarly declined by 21.1% from RM275 million to RM217 million. The decline is mainly due to the global economy slowdown in 2009 & losses incurred due to the shutdown of its China operations (approximately RM8 million as of to-date) further eroded the net profit of the group.

Financial Position

Gtronic's financial position is very satisfactory with little borrowings and a current ratio of 3 times as at 31/12/2009.


Table: Gtronic's last 8 quarterly results


Chart 2: Gtronic's last 27 quarterly results

Conclusion

Based on technical breakout, Gtronic could be a trading BUY.
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2 comments:

  1. InvestorcratSunday, April 03, 2011 2:14:00 PM

    Hi Alex, many thanks again for your inputs.

    Is it possible for you to update the last 8 QE of Gtronics? You havent been touching the semiconductor sector for a while and i believe an upswing is imminent with the recovery of US market.

    many thanks again for your efforts. you deserve a pat or two at the back! :)

    ReplyDelete
  2. Alex LuMonday, April 04, 2011 2:50:00 PM

    Hi Political Crow's Nest

    Gtronics is still in a downtrend line with resistance at RM1.11-1.12. This means that it is very close to a potential test & a breakout.

    SOX, the Philadelphia Semiconductor index is rather toppish. It is at 432-433 now and looks set for a pullback towards its uptrend line, with support at 365-370.

    Good luck!

    ReplyDelete