Wednesday, February 29, 2012

Digista- good for a swing trade

In early February, I posted on the upside breakout for Digista (here). It rose to a high of RM0.64 & it has since dropped back to test its horizontal support at RM0.48. This support is also the 3rd fan uptrend line (S-S3) which must not be violated. A break below this 3rd fan trend line could spell the end of Digista's present uptrend.

Digista reported its results for QE31/12/2011 yesterday. Its net profit dropped 11.4% y-o-y to RM3.9 million while its turnover dropped 20.3% to RM22 million. Based on the annualized EPS of 7.0 sen, Digista at RM0.505 is trading at a PE of 7.2 times. For a small-cap stock, that PE is deemed reasonable.

If the stock can stay above the RM0.48 level, it could be a attractive stock for medium-term investment or a swing trade.


Chart: Digista's daily chart as at Feb 29, 2012_12.30pm (Source: Quickcharts)
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3 comments:

  1. TRULY MALAYSIANWednesday, February 29, 2012 2:11:00 PM

    Dear Alex,

    Can you give some cooments on Kretam and Bonia?

    Many Thanks.

    ReplyDelete
  2. StructuredsettlementWednesday, February 29, 2012 2:13:00 PM

    your blog are vary informative.your personal record are very nice.Earnings forecasts and target downgraded. We have lowered our expectations based on the dismal 2Q results and in view of protracted soft patch in US and worsening sovereign debt crisis in Europe. Besides lowering our earnings forecasts, we also expect lower PER multiples of 13.6x 2012 from 14.6x due to rising risk aversion. Note that there is a further downside risk to our numbers given that the debt crisis in Europe is fast turning into solvency crisis of states and banks while US could easily slip into a double dip.
    sell structured settlement

    ReplyDelete
  3. Alex LuWednesday, March 07, 2012 2:30:00 PM

    Hi TRULY MALAYSIAN

    Kretam is at its intermediate uptrend line support at RM2.38-2.40 while its resistance is at the horizontal line at RM2.50.

    Bonia is forming a saucer or possibly a cup [with the handle yet to be formed]. The breakout level is at RM2.45. Support at RM2.25-2.30.

    You can use the current weakness to slowly buy into Bonia. You may want to track Kretam for 2-3 weeks to see which direction the stock is heading. It may break to the downside or to the upside. Then, you would know whether to buy or not to buy.

    ReplyDelete