Result Update
For QE30/9/2013, JOBST's net profit was mixed- down 2% q-o-q but up 2% y-o-y to RM16.3 million while revenue was similarly mixed- down marginally q-o-q but up 12% y-o-y to RM46 million.
Table: JOBST's last 8 quarterly results
Chart 1: JOBST's last 29 quarterly results
Valuation
JOBST (closed at RM2.14 on May 23) is now trading at a PE of 21.4 times (based on last 4 quarters' EPS of 10.0 sen). At this multiple, JOBST is deemed fully valued as its PEG ratio is about 1 time (as its 3-year CAGR for its net profit is 20%).
(Note: JOBST had completed a 1-for-2 share split on September 2, 2013)
Technical Outlook
JOBST continued its uptrend after it broke above its resistance at RM1.40 (or RM2.80 before the share split in September). With the stock trading in all-time territory, the technical outlook is bullish. However, you would notice that the MACD has hooked down and the same negative signals are also clearly displayed in the RSI & DMI indicators. These negative indicators reading could be signaling a near-term weakness in the stock. From Chart 3, we can see that JOBST is now trading above its irregular upward channel. Is the stock about to go into an exponential rise? I don't think so as JOBST is not a stock that has been rallied in the manner in the past. Is the negative indicator readings a signal that the stock may drop back into the channel? we will have to wait & see.
Chart 2: JOBST's weekly chart as at Nov 22, 2013 (Source: Quickcharts)
Chart 2: JOBST's monthly chart as at Nov 22, 2013 (Source: Quickcharts)
Conclusion
Based on improved financial performance & positive technical outlook, JOBST is a good stock to hold for long-term investment. However, its valuation is a bit stretched and this may lead to price consolidation for the weeks ahead.
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, JOBST.
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