BJFood announced its acquisition of Jollibean Foods Pte Ltd, Singapore (“Jollibean”) for a cash consideration of SGD7.50 million (or about RM19.02 million). Jollibean is a Singapore-based company that owns a chain of 30 outlets that involved in the sales of soya products. For more, go here.
From the chart below, we can see that BJFood has recovered back above its uptrend line at RM1.31. If it can also break above its recent high of RM1.34, this stock may continue with its prior uptrend. Its next target is RM1.50. Amresearch, which has a strong buy recommendation on the stock, raised the fair value from RM1.40 to RM1.55 from the acquisition (here).
If BJFood can surpass its recent high of RM1.34, it could be a good trading BUY.
Chart 1: BJFood's daily chart as at Dec 11, 2012_2.45pm (Source: Quickcharts)
Chart 2: BJFood's monthly chart as at Dec 11, 2012_2.45pm (Source: Quickcharts)
Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, BJFood
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