Thursday, July 21, 2011

UOADev- finding a bottom?

UOADev is a newly-listed company which has disappointed many investors (here & here). Since its quotation on June 8, it has been sliding. It opened at RM2.60- the IPO price for institutional investors- went to a high of RM2.62 and never looked back. From the chart below, we can see UOADev is in a clear downtrend line (RR). However, it managed to break above that downtrend line at RM2.12 today. This breakout on relatively thin volume could signal a temporary bottom for the stock. UOADev may trade between RM2.00 and RM2.20 for a while before a new price direction can emerge. For those investors holding the stock, I think you can breath a sigh of relief and hold onto the stock for now.


Chart: UOADev's 60-min chart as at July 21, 2011_11.15am (Source: Quickcharts)
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3 comments:

  1. AnonymousThursday, July 21, 2011 12:49:00 PM

    Hi Alex

    Can you comment on Sealink prospect? Share price has been trade sideway, any possible breakout for these stock? Currently Sealink is trading cum dividend of 2.7sen TE, or yield at 4.4% nett.
    .

    ReplyDelete
  2. Alex LuThursday, July 21, 2011 3:28:00 PM

    Hi hng

    I am not familiar with Sealink. It seems to be holding very well at RM0.58-0.60. As the indicators are fairly weak, I don't see the stock rally soon.

    Since the listing, the company's financial performance has deteriorated. For FY2010, net profit dropped to RM33.6 mil from RM58.2 mil previously while turnover was up from RM193 mil to RM224 mil. For QE31/3/2011, its net profit dropped to RM9.4 mil from RM13.0 mil last year while turnover dropped from RM79 mil to RM51 mil. The deterioration in its financial performance may explain the stock's lackluster performance.

    However the stock is trading at a fair PE of 9 times. If its dividend is decent, as you said, then the stock should hold at the present price. For a rally to take place, it needs something more, maybe improved bottom-line & top-line.

    ReplyDelete
  3. FlorenceThursday, July 21, 2011 3:32:00 PM

    Hi Alex,

    Can you comment on this counter? YTL power

    ReplyDelete