Monday, January 13, 2014

Luxchem may have a bullish breakout

Luxchem has surpassed it intermediate downtrend line at RM1.35-1.38. It has even surpassed the intraday high of RM1.44 recorded on August 1, 2012 before retreating back to RM1.40. If it can recruit further buying support, its next upleg may begin.At this juncture, it is important that it stays above the RM1.40 mark.

For 9-month ended 30//9/2013, Luxchem reported a lower net profit was RM14 million (cf RM16 million previously) while its revenue increased from RM375 million to RM396 million. Its annualized EPS for FY2013 is about 14 sen. Thus the stock is fully valued with its PER at about 10x.

Based on technical breakout only, Luxchem could be a trading BUY. Potential target is RM1.60.


Chart: Luxchem's weekly chart as at Jan 10, 2014 (Source: Tradesignum)

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, Luxchem.
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4 comments:

  1. laiTuesday, January 14, 2014 3:13:00 PM

    Hi Alex,

    May i know what is your Technical assessment of Tadmax pls?

    Thank you.

    ReplyDelete
  2. hngWednesday, January 15, 2014 11:01:00 AM

    Hi Alex

    What do think the odds for YTLP to secure Project 3b, 2000MW coal fire power plant? The edge weekly edition report YTLP is the lowest bid in tender and the result is expect to announce next Monday. What is YTLP current support and resistance level?

    Remark:
    YTLP (70%) has team up with SIPP (30%) control by Sultan of Johor in the bidding (somehow SIPP has replace Ranhill energy as partner)

    ReplyDelete
  3. Alex LuWednesday, January 15, 2014 2:55:00 PM

    Hi lai

    Tadmax has broken above the strong horizontal resistance at RM0.40. While this bullish breakout could signal a possible uptrend in the stock, you have to bear in min that this is a company with substantial losses.

    ReplyDelete
  4. laiWednesday, January 15, 2014 4:11:00 PM

    thanks for the explanation.

    probably, this is the nature of the mkt here? loss making company, share price skyrocket. money making, low PE, high FCF company, down in the dump??

    Moral hazard or respect for Mr Market???

    ReplyDelete