Monday, December 09, 2013
Brem may have a bullish breakout
Brem is involved in property development & investment, civil engineering & construction and water supply & services. In 1H2014, Grem reported a net profit of RM18.8 million on revenue of RM92.2 million. Compared to 1H2013, the top-line and bottom-line improved substantially due to mainly to better performance from the property development segment.
As at 10.00am, Brem was trading at RM1.35 (a gain of 7 sen). At this price, it is trading at a PE of 6 times- a fair price for a small cap stock.
Chartwise, it has just broken above its horizontal line at RM1.32. With this breakout, the stock could potentially rise to RM1.50-1.55.
Chart: Brem's weekly chart as at Dec 6, 2013 (Source: Tradesignum)
Based on technical consideration & reasonable valuation, Brem could be a good trading BUY.
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, Brem.