Censof- poised to test its downtrend line

Some readers complained that I liked to recommend stocks that had achieved a breakout and are no longer cheaper. You can never win in any argument why you should buy a stock after it had a breakout, even though it is more expensive instead of buying into a stock, even though it is cheap, and wait for a breakout which may never come. There is a saying that nothing succeed as as well as success and I like to stay with that.

However, I would track a stock for a long while and I would call a buy when it has achieved a breakout. Today, I would share with you one such stocks. It is Censof, a software company that sells extensively to government departments & agencies. It has plans to expand to Indonesia. It is not a hugely profitable company but it made decent profit (here). It has proposed a bonus issue of 1 free warrant for every 8 shares held, which may be the reason for a slight upticks in the share price over the past few days.

If it can break above the RM0.45, the stock would have an upside breakout above its intermediate downtrend line. Then it could be a good trading BUY. For those who have always wanted to buy early, here is your opportunity to do so- before a breakout.


Chart: Censof's daily chart as at July 3, 2012 (Source: Quickcharts)