Censof- broke above its strong horizontal resistance of RM0.55

Century Software Holdings Bhd ('Censof') is involved in the provision of financial management software solution and payment aggregation software solution. The company has recently proposed to issue up to RM100 million of redeemable convertible notes (RCN), which will be used for future strategic acquisitions and/or repay borrowings undertaken to fund such strategic acquisitions. Go here for more information.

The above fund-raising activity has gotten many people excited about the stock. Censof is a profitable company, which reported a net profit of RM9.4 million on a revenue of RM44.5 million for FYE31/12/2012. At the current price of RM0.58, Censof is trading at a trailing PE of 20 times. That's very high for a mid-cap stock.

From the chart below, we can see that Censof has broken above the strong horizontal resistance at RM0.55. Its next resistance will be at RM0.63.


Chart: Censof's weekly chart as at May 16, 2013_9.30am (Source: quickcharts)

Based on technical consideration, Censof could be a good trading BUY.

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, Censof.