Until then, I wish all my readers a very Happy New Year.
Source: happynewyear2015wallpapers.info
Sunday, December 28, 2014
Happy New Year
I will be on a short hiatus for the whole of next week. I will be back in action the following week.
Until then, I wish all my readers a very Happy New Year.
Source: happynewyear2015wallpapers.info
Until then, I wish all my readers a very Happy New Year.
Source: happynewyear2015wallpapers.info
Wednesday, December 24, 2014
Tuesday, December 23, 2014
Yinson: Bottom-line improved due to forex & disposal gain
Results Update
For QE31/10/2014, Yinson's net profit increased by 183% q-o-q or 460% y-o-y to RM87 million while revenue was mixed- down 9% q-o-q but rose 8% y-o-y to RM255 million. Pre-tax profit increased due to RM20.9 million gain on the disposal of a subsidiary and stake in a JV, increase in forex gain of RM24.8 million and higher contribution from its marine segment.
Table 1: Yinson's last 8 quarterly results
From the table below, we can see that Yinson's revenue growth came from the Marine segment while the Trading segment has suffered decline in revenue. At the same time, the Marine segment contributed a sizable chunk of its operating profit.
Table 2: Yinson's segmental results for QE31/10/2014
Chart 1: Yinson's last 29 quarterly results
Valuation
Yinson (RM2.81 yesterday) is now trading at a trailing PE of 15.2 times (based on last 4 quarters' EPS of 18.4 sen). However, if we exclude the exceptional gain from disposal of subsidiary & stake in JV plus forex gain, the last 4 quarters' EPS would be reduced to. ~14.0 sen and PE would rise to 20 times. While the earning growth has been solid, it is doubtful that this trend will continue given the current weak crude oil environment. As such, Yinson is deemed fully valued for now.
Technical Outlook
Yinson is in an uptrend, with support at RM2.40 (using the 20-month SMA line as a proxy for uptrend line). The RM2.40 level is also the neckline for a head-and-shoulder formation which is still intact. If Yinson stay above the neckline of the head-and-shoulder formation, it will convert from a potential reversal pattern to a continuation pattern; thus signaling the continuation of the prior or current uptrend.
Chart 2: Yinson's monthly chart as at Dec 22, 20114 (Source: ShareInvestor.com)
Chart 3: Yinson's weekly chart as at Dec 22, 20114 (Source: ShareInvestor.com)
Conclusion
Based on satisfactory financial performance & positive technical outlook, Yinson is rated a good stock for medium-term investment. However, its upside potential is limited as the stock is fully valued for now.
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, Yinson.
For QE31/10/2014, Yinson's net profit increased by 183% q-o-q or 460% y-o-y to RM87 million while revenue was mixed- down 9% q-o-q but rose 8% y-o-y to RM255 million. Pre-tax profit increased due to RM20.9 million gain on the disposal of a subsidiary and stake in a JV, increase in forex gain of RM24.8 million and higher contribution from its marine segment.
Table 1: Yinson's last 8 quarterly results
From the table below, we can see that Yinson's revenue growth came from the Marine segment while the Trading segment has suffered decline in revenue. At the same time, the Marine segment contributed a sizable chunk of its operating profit.
Table 2: Yinson's segmental results for QE31/10/2014
Chart 1: Yinson's last 29 quarterly results
Valuation
Yinson (RM2.81 yesterday) is now trading at a trailing PE of 15.2 times (based on last 4 quarters' EPS of 18.4 sen). However, if we exclude the exceptional gain from disposal of subsidiary & stake in JV plus forex gain, the last 4 quarters' EPS would be reduced to. ~14.0 sen and PE would rise to 20 times. While the earning growth has been solid, it is doubtful that this trend will continue given the current weak crude oil environment. As such, Yinson is deemed fully valued for now.
Technical Outlook
Yinson is in an uptrend, with support at RM2.40 (using the 20-month SMA line as a proxy for uptrend line). The RM2.40 level is also the neckline for a head-and-shoulder formation which is still intact. If Yinson stay above the neckline of the head-and-shoulder formation, it will convert from a potential reversal pattern to a continuation pattern; thus signaling the continuation of the prior or current uptrend.
Chart 2: Yinson's monthly chart as at Dec 22, 20114 (Source: ShareInvestor.com)
Chart 3: Yinson's weekly chart as at Dec 22, 20114 (Source: ShareInvestor.com)
Conclusion
Based on satisfactory financial performance & positive technical outlook, Yinson is rated a good stock for medium-term investment. However, its upside potential is limited as the stock is fully valued for now.
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, Yinson.
Monday, December 22, 2014
Market Outlook as at December 22, 2014
Our FBMKLCI rebounded very well today. At the time of writing (4:40pm), the index is up 29 points at 1745. The question on everyone's mind is whether this is the beginning of the recovery.
Looking at the weekly chart, it is clear that our FBMKLCI was in a Head-and-shoulder formation until it broke below the neckline at 1770 two weeks ago. This means that FBMKLCI has a bearish reversal. Based on a 1-for-1 projection, the immediate downside will be 1640. It may go below that level. However, if FBMKLCI can climb back above the neckline of 1770, the bearish reversal may be negated.
It has been 2 weeks since the breakdown and I feel that the market had ample opportunity to recover above the neckline and it failed to do so. If you shared this view, then you should use the current rebound to reduce your position. The rebound may fail at 1750-1770.
Chart: FBMKLCI's weekly chart as at Dec 19, 2014 (Powered by ShareInvestor.com)
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 FBMKLCI.
Looking at the weekly chart, it is clear that our FBMKLCI was in a Head-and-shoulder formation until it broke below the neckline at 1770 two weeks ago. This means that FBMKLCI has a bearish reversal. Based on a 1-for-1 projection, the immediate downside will be 1640. It may go below that level. However, if FBMKLCI can climb back above the neckline of 1770, the bearish reversal may be negated.
It has been 2 weeks since the breakdown and I feel that the market had ample opportunity to recover above the neckline and it failed to do so. If you shared this view, then you should use the current rebound to reduce your position. The rebound may fail at 1750-1770.
Chart: FBMKLCI's weekly chart as at Dec 19, 2014 (Powered by ShareInvestor.com)
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 FBMKLCI.
AEONCR: Uptrend ended!
Result Update
For QE20/11/2014, AEONCR's net profit increased by 2% q-o-q or 12% y-o-y to RM48 million while revenue inched higher by 3% q-o-q or 21% y-o-y to RM216 million. Pre-tax profit improved 15.9% y-o-y due to 29.5%-increase in financing receivables (brought on by 3.6%-growth in financing volume) plus 64.6%-increase in other op. incomes (due to increase in bad debts recovered and AEON Big loyalty program processing fee). These had more than offset the increase in non-performing loans (NPL) ratio from 2.02% to 3.07% and increase in the ratio of total operating expenses against revenue from 58.7% to 60.4%. and higher average funding cost (though no number was given). The Company’s effective tax rate was higher than the statutory tax rate as certain expenses are not deductible for tax purpose.
Table: Aeoncr's last 8 quarterly results
Chart 1: Aeoncr's last 30 quarterly results
Valuation
AEONCR (closed at RM11.04 last Friday) is now trading at a PE of 8 times (based on last 4 quarters' EPS of 138 sen). At this PE, AEONCR is deemed very attractive. Based on earning CAGR of about 20%, the stock's PEG ratio is at an attractive 0.4 time.
Technical Outlook
AEONCR's uptrend has reversed, with lower troughs and lower peaks. Immediate support is at the psychological RM10.00 level.
Chart 2: Aeoncr's monthly chart as at Dec 19, 2014 (Source: ShareInvestor.com)
Conclusion
Based on good financial performance & attractive valuation, AEONCR is still a good stock for long-term investment. However, AEONCR will likely to slide further as its technical outlook has turned negative.
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, AEONCR.
For QE20/11/2014, AEONCR's net profit increased by 2% q-o-q or 12% y-o-y to RM48 million while revenue inched higher by 3% q-o-q or 21% y-o-y to RM216 million. Pre-tax profit improved 15.9% y-o-y due to 29.5%-increase in financing receivables (brought on by 3.6%-growth in financing volume) plus 64.6%-increase in other op. incomes (due to increase in bad debts recovered and AEON Big loyalty program processing fee). These had more than offset the increase in non-performing loans (NPL) ratio from 2.02% to 3.07% and increase in the ratio of total operating expenses against revenue from 58.7% to 60.4%. and higher average funding cost (though no number was given). The Company’s effective tax rate was higher than the statutory tax rate as certain expenses are not deductible for tax purpose.
Table: Aeoncr's last 8 quarterly results
Chart 1: Aeoncr's last 30 quarterly results
Valuation
AEONCR (closed at RM11.04 last Friday) is now trading at a PE of 8 times (based on last 4 quarters' EPS of 138 sen). At this PE, AEONCR is deemed very attractive. Based on earning CAGR of about 20%, the stock's PEG ratio is at an attractive 0.4 time.
Technical Outlook
AEONCR's uptrend has reversed, with lower troughs and lower peaks. Immediate support is at the psychological RM10.00 level.
Chart 2: Aeoncr's monthly chart as at Dec 19, 2014 (Source: ShareInvestor.com)
Conclusion
Based on good financial performance & attractive valuation, AEONCR is still a good stock for long-term investment. However, AEONCR will likely to slide further as its technical outlook has turned negative.
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, AEONCR.
Scientx: Bottom-line dipped
Result Update
For QE31/10/2014, Scientx's net profit dropped by 38% q-o-q but rose 3% y-o-y to RM30 million while revenue grew by 4% q-o-q or 18% y-o-y to RM431 million. Pre-tax profit dropped q-o-q due to poorer products mix for both manufacturing & property development divisions plus provision for unrealized forex loss of RM5.0 million.
Table 1: Scientex's last 8 quarterly results
Chart 1: Scientex's last 37 quarterly results
Valuation
Scientex (at RM7.08 last Friday) is now trading at a trailing PE of 10.4 times (based on last 4 quarters' EPS of 68 sen). With strong growth of about 30% last 4 quarters, Scientx is an attractive growth stock with PEG ratio is about 0.3 time only.
Technical Outlook
Scientx has been in an uptrend since breaking above its large triangle (ABC) at RM1.50 in early 2010. Despite the recent selldown, Scientx's uptrend is still intact. The sharp q-o-q drop in bottom-line could lead to short-term weakness in the share price.
Chart 2: Scientex's weekly chart as at Dec 19, 2014 (Source: Tradesignum)
Conclusion
Based on good financial performance, attractive valuation & positive technical outlook, Scientex remains a good stock for medium to long-term investment.
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, Scientex.
For QE31/10/2014, Scientx's net profit dropped by 38% q-o-q but rose 3% y-o-y to RM30 million while revenue grew by 4% q-o-q or 18% y-o-y to RM431 million. Pre-tax profit dropped q-o-q due to poorer products mix for both manufacturing & property development divisions plus provision for unrealized forex loss of RM5.0 million.
Table 1: Scientex's last 8 quarterly results
Chart 1: Scientex's last 37 quarterly results
Valuation
Scientex (at RM7.08 last Friday) is now trading at a trailing PE of 10.4 times (based on last 4 quarters' EPS of 68 sen). With strong growth of about 30% last 4 quarters, Scientx is an attractive growth stock with PEG ratio is about 0.3 time only.
Technical Outlook
Scientx has been in an uptrend since breaking above its large triangle (ABC) at RM1.50 in early 2010. Despite the recent selldown, Scientx's uptrend is still intact. The sharp q-o-q drop in bottom-line could lead to short-term weakness in the share price.
Chart 2: Scientex's weekly chart as at Dec 19, 2014 (Source: Tradesignum)
Conclusion
Based on good financial performance, attractive valuation & positive technical outlook, Scientex remains a good stock for medium to long-term investment.
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, Scientex.
VS: A good quarter!
Result Update
For QE31/10/2014, VS's net profit dropped by 3.4% q-o-q but rose 268% y-o-y to RM35 million while revenue rose marginally by 1.9% q-o-q or 25% y-o-y to RM545 million. Pre-tax profit increased q-o-q mainly attributable to higher sales generated by the Malaysian operations compared to the preceding quarter coupled with improved gross profit margin resulting from improved sales mix for the Malaysian operations. Profit after tax dropped q-o-q as VS did not enjoy a tax credit, unlike the immediate preceding quarter. For QE31/10/2014, it recognized a lower tax incentive in relation to the export incentive of RM4.04 million as compared to an oversized export incentive of RM20.38 million in QE31/7//2014.
Table 2: VS's last 8 quarterly results
Chart 1: VS's last 39 quarterly results
Valuation
VS (closed at RM2.41 last Friday) is trading at a trailing PE of 6 times (based on last 4 quarters' EPS of 42 sen). If we exclude the exceptional large tax credit for QE31/7/2014, the 4 quarters' EPS would be reduced to 32 sen and the trailing PE would rise to 8 times. Based on the revised PE, VS is still trading at undemanding PE multiple.
Technical Outlook
VS was a strong uptrend since June this year. It rose from RM1.60 to a high of RM2.70 in October before dropping to an intra-day low of RM2.08 on December 15. Since the release of its good results, the stock had rebounded to about RM2.40. We can see that VS's immediate resistance and support are RM2.70 & RM2.20, respectively.
Chart 3: VS's monthly chart as at Dec 19, 2014 (Source: ShareInvestor.com)
Conclusion
Based good financial performance and fairly attractive valuation, VS is still a good stock for medium-term investment. To go higher, the share price needs to break above the immediate resistance of RM2.70.
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, VS.
For QE31/10/2014, VS's net profit dropped by 3.4% q-o-q but rose 268% y-o-y to RM35 million while revenue rose marginally by 1.9% q-o-q or 25% y-o-y to RM545 million. Pre-tax profit increased q-o-q mainly attributable to higher sales generated by the Malaysian operations compared to the preceding quarter coupled with improved gross profit margin resulting from improved sales mix for the Malaysian operations. Profit after tax dropped q-o-q as VS did not enjoy a tax credit, unlike the immediate preceding quarter. For QE31/10/2014, it recognized a lower tax incentive in relation to the export incentive of RM4.04 million as compared to an oversized export incentive of RM20.38 million in QE31/7//2014.
Table 2: VS's last 8 quarterly results
Chart 1: VS's last 39 quarterly results
Valuation
VS (closed at RM2.41 last Friday) is trading at a trailing PE of 6 times (based on last 4 quarters' EPS of 42 sen). If we exclude the exceptional large tax credit for QE31/7/2014, the 4 quarters' EPS would be reduced to 32 sen and the trailing PE would rise to 8 times. Based on the revised PE, VS is still trading at undemanding PE multiple.
Technical Outlook
VS was a strong uptrend since June this year. It rose from RM1.60 to a high of RM2.70 in October before dropping to an intra-day low of RM2.08 on December 15. Since the release of its good results, the stock had rebounded to about RM2.40. We can see that VS's immediate resistance and support are RM2.70 & RM2.20, respectively.
Chart 3: VS's monthly chart as at Dec 19, 2014 (Source: ShareInvestor.com)
Conclusion
Based good financial performance and fairly attractive valuation, VS is still a good stock for medium-term investment. To go higher, the share price needs to break above the immediate resistance of RM2.70.
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, VS.
Friday, December 19, 2014
Market Outlook as at December 19, 2014
Courtesy of ShareInvestor.com, I have accessed to a powerful website that offers fundamental & technical analysis that are very useful to investors and traders alike.
From this paid website, I have been studying the FBMKLCI chart for the past few days. You will notice that the FBMKLCI has been in an upward channel since 1999 (see the blue lines). If you divide the channel into 2 halves, i.e. X-Y & Y-Z, you can see 2 distinct periods: 2000 to 2007 (denoted as 'Zone A') and 2008 until today (denoted as 'Zone B').,
In Zone A, you will see that the index was trading mostly in the lower half of the channel, except for 2007. In Zone B, the index was trading mostly in the upper half of the channel. Why? Is it because US & Japanese central banks flooded their market with easy money thru QE? If so, what would happen when US Fed begins the tightening measures next year? Would ECB's easy money policies be sufficient to make up for Fed's withdrawal?
In Zone A, the index's upside was capped in the lower half from 2004-2006 by the line Y-Y1. Would the opposite happens this time around, i.e. would the line Y-Y1 acts as the support if the market were to weaken further?
These are some questions I can post here today because our market has rebounded nicely over the past 2 days. Let's hope that the market will be kinder to us for the rest of the year, so that we can have a worry-free Xmas and a bountiful New Year.
Chart: FBMKLCI's monthly chart as at Dec 19, 2014 (Powered by ShareInvestor.com)
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 FBMKLCI.
From this paid website, I have been studying the FBMKLCI chart for the past few days. You will notice that the FBMKLCI has been in an upward channel since 1999 (see the blue lines). If you divide the channel into 2 halves, i.e. X-Y & Y-Z, you can see 2 distinct periods: 2000 to 2007 (denoted as 'Zone A') and 2008 until today (denoted as 'Zone B').,
In Zone A, you will see that the index was trading mostly in the lower half of the channel, except for 2007. In Zone B, the index was trading mostly in the upper half of the channel. Why? Is it because US & Japanese central banks flooded their market with easy money thru QE? If so, what would happen when US Fed begins the tightening measures next year? Would ECB's easy money policies be sufficient to make up for Fed's withdrawal?
In Zone A, the index's upside was capped in the lower half from 2004-2006 by the line Y-Y1. Would the opposite happens this time around, i.e. would the line Y-Y1 acts as the support if the market were to weaken further?
These are some questions I can post here today because our market has rebounded nicely over the past 2 days. Let's hope that the market will be kinder to us for the rest of the year, so that we can have a worry-free Xmas and a bountiful New Year.
Chart: FBMKLCI's monthly chart as at Dec 19, 2014 (Powered by ShareInvestor.com)
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 FBMKLCI.
Tuesday, December 16, 2014
Japanese Yen: At the critical juncture
What's happening to the yen? JPY has depreciated by 15% against USD in the past 3 months and as
much as 30% against USD since October 2012. See Chart 4 below.
Chart 1: JPY-USD & USD-JPY's weekly chart as at Dec 12, 2014 (Source: Stockcharts.com)
The long-term uptrend for JPY-USD is still intact provided it does not break below the 0.008 mark (or 1 JPY = 0.008 USD). Alternatively, the long-term downtrend for USD-JPY is still intact provided it does not break above the 125 mark (or 1 USD = 125 JPY).
A breakout of this 40-year trend would have serious ramification, which I am not in the position to examine. However, given the difficulty that the Japanese government is facing in trying to revive the economy, one cannot rule out the possibility that Japanese government may adopt extreme measures, including a cheap yen policy to jump-start the moribund economy. The recent electoral victory for Abe could help to strengthen his hands to push through these measures. Who knows?
Chart 1: JPY-USD & USD-JPY's monthly chart from 1960 to Dec 12, 2014 (Source: fxtop.com)
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, JPY and/or USD.
Chart 1: JPY-USD & USD-JPY's weekly chart as at Dec 12, 2014 (Source: Stockcharts.com)
The long-term uptrend for JPY-USD is still intact provided it does not break below the 0.008 mark (or 1 JPY = 0.008 USD). Alternatively, the long-term downtrend for USD-JPY is still intact provided it does not break above the 125 mark (or 1 USD = 125 JPY).
A breakout of this 40-year trend would have serious ramification, which I am not in the position to examine. However, given the difficulty that the Japanese government is facing in trying to revive the economy, one cannot rule out the possibility that Japanese government may adopt extreme measures, including a cheap yen policy to jump-start the moribund economy. The recent electoral victory for Abe could help to strengthen his hands to push through these measures. Who knows?
Chart 1: JPY-USD & USD-JPY's monthly chart from 1960 to Dec 12, 2014 (Source: fxtop.com)
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, JPY and/or USD.
Monday, December 15, 2014
MYR: Due for a rebound!
After a depreciation of 5-6% over the past 2 months, MYR is set to test its technical support. The SGD-MYR chart shows that the SGD is rising against the MYR in an upward channel. The recent weakness in MYR has pushed the SGD to the upper boundary of that channel. For political reason, I do not think it is acceptable for SGD to break above the level of RM2.70. I expect BNM to support the MYR in order to keep SGD-MYR within the upward channel (or not exceeding the 1 SGD = 2.70 MYR.
Chart 1: SGD-MYR's weekly chart as at Dec 15, 2014 (Source: XE Currency Converter)
Similarly, I do not expect MYR to recover lost ground against the THB. MYR is now hanging onto the support of 9400.
Chart 2: MYR-THB's weekly chart as at Dec 15, 2014 (Source: XE Currency Converter)
MYR has however strengthened against the JPY. That's because JPY has weakened substantially since August. Notwithstanding the extremely sharp drop in the value of JPY, it is good to note that MYR-JPY will be coming up against a strong resistance at 36 (or 1 MYR = 36 JPY). The weakness of the JPY will be covered in another article.
Chart 3: MYR-JPY's weekly chart as at Dec 15, 2014 (Source: XE Currency Converter)
All in all, I believe that our MYR is poised for a technical rebound. This could coincide with a temporary bottom for our market, which had been badly mauled over the past 2 months. Where will the bottom be? From the market action today, it seems likely that the 1700 psychological support may not hold. Let's hope that 1600 psychological level will stop the carnage!
Chart 4: FBMKLCI's weekly chart as at Dec 15, 2014 (Source: BTX)
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, FBMKLCI, MYR, SGD, THB and/or JPY.
Chart 1: SGD-MYR's weekly chart as at Dec 15, 2014 (Source: XE Currency Converter)
Similarly, I do not expect MYR to recover lost ground against the THB. MYR is now hanging onto the support of 9400.
Chart 2: MYR-THB's weekly chart as at Dec 15, 2014 (Source: XE Currency Converter)
MYR has however strengthened against the JPY. That's because JPY has weakened substantially since August. Notwithstanding the extremely sharp drop in the value of JPY, it is good to note that MYR-JPY will be coming up against a strong resistance at 36 (or 1 MYR = 36 JPY). The weakness of the JPY will be covered in another article.
Chart 3: MYR-JPY's weekly chart as at Dec 15, 2014 (Source: XE Currency Converter)
All in all, I believe that our MYR is poised for a technical rebound. This could coincide with a temporary bottom for our market, which had been badly mauled over the past 2 months. Where will the bottom be? From the market action today, it seems likely that the 1700 psychological support may not hold. Let's hope that 1600 psychological level will stop the carnage!
Chart 4: FBMKLCI's weekly chart as at Dec 15, 2014 (Source: BTX)
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, FBMKLCI, MYR, SGD, THB and/or JPY.
Wednesday, December 10, 2014
BJFood: Bottom-line soared due to one-time investment gain
Results Update
For QE31/10/2013 2014, BJFood's net profit increased increased by 26-fold q-o-q or 6-fold y-o-y to RM164 million due mainly to the recognition of the gain of RM158.6 million arising from re-measurement of the 50% equity interest in BStarbucks.
Excluding the one-time net gain of RM158.6 million, the current quarter pre-tax profit of RM6.70 million showed a y-o-y increase of RM1.64 million. The higher pre-tax profit was mainly due to the consolidation of the improved results of BStarbucks arising from more store openings and the contribution of the Brunei Starbucks operations.
Revenue increased y-o-y due to the effect of consolidation of the newly acquired wholly-owned subsidiary, BStarbucks, as well as the contribution from the Starbucks operations in Brunei, which only commenced operation in February 2014.
Table: BJFood's last 8 quarterly results
Chart 1: BJFood's last 20 quarterly results (excluding the extraordinary gain of RM158.6 million recorded in QE31/10/2014)
Valuation
BJFood (closed at RM2.79 yesterday3) is now trading at a PE of 29 times (based on last 4 quarters' EPS of 9.6 sen, excluding the extraordinary gain of RM158.6 million). At this PE, BJFood is deemed fully valued.
Technical Outlook
BJFood is still in an uptrend line. Its immediate support is the horizontal line at RM2.60. If this support is broken, the stock's next support is at RM2.35.
Chart 3: BJFood's weekly chart as at Dec 9, 2014 (Source: Share Investor)
Conclusion
Based on good financial performance, BJFood is still a good stock to hold for long-term investment. However, it is immediate upside is likely to be limited as its valuation is fairly demanding.
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.
For QE31/10/
Excluding the one-time net gain of RM158.6 million, the current quarter pre-tax profit of RM6.70 million showed a y-o-y increase of RM1.64 million. The higher pre-tax profit was mainly due to the consolidation of the improved results of BStarbucks arising from more store openings and the contribution of the Brunei Starbucks operations.
Revenue increased y-o-y due to the effect of consolidation of the newly acquired wholly-owned subsidiary, BStarbucks, as well as the contribution from the Starbucks operations in Brunei, which only commenced operation in February 2014.
Table: BJFood's last 8 quarterly results
Chart 1: BJFood's last 20 quarterly results (excluding the extraordinary gain of RM158.6 million recorded in QE31/10/2014)
Valuation
BJFood (closed at RM2.79 yesterday3) is now trading at a PE of 29 times (based on last 4 quarters' EPS of 9.6 sen, excluding the extraordinary gain of RM158.6 million). At this PE, BJFood is deemed fully valued.
Technical Outlook
BJFood is still in an uptrend line. Its immediate support is the horizontal line at RM2.60. If this support is broken, the stock's next support is at RM2.35.
Chart 3: BJFood's weekly chart as at Dec 9, 2014 (Source: Share Investor)
Conclusion
Based on good financial performance, BJFood is still a good stock to hold for long-term investment. However, it is immediate upside is likely to be limited as its valuation is fairly demanding.
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.
SKPetro: A lot cheaper...
Results Update
For QE31/10/2014, SKPetro's net profit increased by 42% y-o-y to RM348 million while revenue increased marginally by 1% to RM2.41 billion. Compared to the immediate preceding quarter, QE31/7/2014, net profit dropped by 22% while revenue declined by 11%.
Table 1: SKPetro's last 8 quarterly results
The y-o-y improvement in bottom-line was attributed to higher contribution from the Drilling & Energy Services ("DES') segment, which experienced a 34%-increase in revenue. This increased revenue offset the drop in revenue from the Offshore Construction & Subsea Services ('OCSS') segment.
The q-o-q decline in bottom-line was attributed to drop in earning by all segments, especially the DES & OCSS segments. These 2 segments experienced lower revenue of 5% & 26%, respectively.
Table 1: SKPetro's segmental results
Chart 1: SKPetro's last 10 quarterly results
Financial Position
As at 31/10/2014, SKPetro's financial position is deemed acceptable, with adequate liquidity albeit slightly elevated leverage. Its current ratio stood at 1.2 times while gearing ratio stood at 1.9 times. Gearing ratio is defined as Total Liabilities over Total Equity. However, if you used Total Borrowings over Total Equity to calculate gearing ratio, then that number would be 1.4 times.
Valuation
SKPetro (closed at RM2.45 yesterday) is now trading at a trailing PE of 8.9 times (based on last 4 quarters' EPS of 27.4 sen). This low PE multiple seems to suggest that SKPetro's earning going forward would drop sharply in line with lower crude oil prices. If this negative scenario does not pan out, then the earning decline would be less and the share price could recover.
Technical Outlook
SKPetro broke its uptrend line at RM4.20 in September. At RM2.45, SKPetro is now trading near its initial quoted prices of RM2.20.
Chart 2: SKPetro's weekly chart as at Dec 9, 2014 (Source: Share Investors)
Conclusion
Based on good financial performance & attractive valuation, SKPetro is a good stock to consider for long-term investment, especially after its recent sharp selldown. However, the low prices may persist for a while due to poor technical outlook and depressed prices for crude oil.
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, SKPetro.
For QE31/10/2014, SKPetro's net profit increased by 42% y-o-y to RM348 million while revenue increased marginally by 1% to RM2.41 billion. Compared to the immediate preceding quarter, QE31/7/2014, net profit dropped by 22% while revenue declined by 11%.
Table 1: SKPetro's last 8 quarterly results
The y-o-y improvement in bottom-line was attributed to higher contribution from the Drilling & Energy Services ("DES') segment, which experienced a 34%-increase in revenue. This increased revenue offset the drop in revenue from the Offshore Construction & Subsea Services ('OCSS') segment.
The q-o-q decline in bottom-line was attributed to drop in earning by all segments, especially the DES & OCSS segments. These 2 segments experienced lower revenue of 5% & 26%, respectively.
Table 1: SKPetro's segmental results
Chart 1: SKPetro's last 10 quarterly results
Financial Position
As at 31/10/2014, SKPetro's financial position is deemed acceptable, with adequate liquidity albeit slightly elevated leverage. Its current ratio stood at 1.2 times while gearing ratio stood at 1.9 times. Gearing ratio is defined as Total Liabilities over Total Equity. However, if you used Total Borrowings over Total Equity to calculate gearing ratio, then that number would be 1.4 times.
Valuation
SKPetro (closed at RM2.45 yesterday) is now trading at a trailing PE of 8.9 times (based on last 4 quarters' EPS of 27.4 sen). This low PE multiple seems to suggest that SKPetro's earning going forward would drop sharply in line with lower crude oil prices. If this negative scenario does not pan out, then the earning decline would be less and the share price could recover.
Technical Outlook
SKPetro broke its uptrend line at RM4.20 in September. At RM2.45, SKPetro is now trading near its initial quoted prices of RM2.20.
Chart 2: SKPetro's weekly chart as at Dec 9, 2014 (Source: Share Investors)
Conclusion
Based on good financial performance & attractive valuation, SKPetro is a good stock to consider for long-term investment, especially after its recent sharp selldown. However, the low prices may persist for a while due to poor technical outlook and depressed prices for crude oil.
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, SKPetro.
Tuesday, December 09, 2014
BJAuto: Bottomline rose on better margin
Results Update
For QE31/10/2014, BJAuto's net profit increased by 2.5% q-o-q or 108% y-o-y to RM58 million while revenue grew marginally q-o-q but rose 80% y-o-y to RM509 million. Revenue growth was marginal because of the contract assembler's paint shop shutdown in October 2014 due to upgrading works. Despite the plant shutdown in October 2014 resulting in less CX-5 CKD model sold, the Group's pre-tax profit still increased by RM4.5 million or 5.9% primarily due to better gross profit margin.
Table: BJAuto's last 8 quarterly results
Chart 1: BJAuto's last 10 quarterly results
Forex Movement
BJAuto is expected to benefit from the weakening of the JPY. Nonetheless, I believe that JPY poised for a technical rebound soon but it will remain weak. It is due to Japanese Central Bank's deliberate policy to weaken the JOY to support its export. This will be good news for BJAuto and other Japanese car distributors.
Chart 2: MYR/JPY & USD/JPY as at Dec 8, 2014 (Source: XE.com)
Valuation
BJAuto (closed at RM3.31 yesterday) is now trading at a PE of 13.8 times (based on last 4 quarters' EPS of 23.9 sen). With its high growth rate, this PE multiple is deemed reasonable. However, the company expected business prospect to be challenging in the near future due to the implementation of GST and weaker consumer sentiment.
Technical Outlook
BJAuto is in an uptrend. A tentative line can be drawn with support at about RM2.90.
Chart 3: BJAuto's weekly chart as at Nov 8, 2014 (Source: Share Investors)
Conclusion
Despite weaker financial performance, BJAuto is rated a HOLD based on.attractive valuation & bullish technical outlook.
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, BJAuto.
For QE31/10/2014, BJAuto's net profit increased by 2.5% q-o-q or 108% y-o-y to RM58 million while revenue grew marginally q-o-q but rose 80% y-o-y to RM509 million. Revenue growth was marginal because of the contract assembler's paint shop shutdown in October 2014 due to upgrading works. Despite the plant shutdown in October 2014 resulting in less CX-5 CKD model sold, the Group's pre-tax profit still increased by RM4.5 million or 5.9% primarily due to better gross profit margin.
Table: BJAuto's last 8 quarterly results
Chart 1: BJAuto's last 10 quarterly results
Forex Movement
BJAuto is expected to benefit from the weakening of the JPY. Nonetheless, I believe that JPY poised for a technical rebound soon but it will remain weak. It is due to Japanese Central Bank's deliberate policy to weaken the JOY to support its export. This will be good news for BJAuto and other Japanese car distributors.
Chart 2: MYR/JPY & USD/JPY as at Dec 8, 2014 (Source: XE.com)
Valuation
BJAuto (closed at RM3.31 yesterday) is now trading at a PE of 13.8 times (based on last 4 quarters' EPS of 23.9 sen). With its high growth rate, this PE multiple is deemed reasonable. However, the company expected business prospect to be challenging in the near future due to the implementation of GST and weaker consumer sentiment.
Technical Outlook
BJAuto is in an uptrend. A tentative line can be drawn with support at about RM2.90.
Chart 3: BJAuto's weekly chart as at Nov 8, 2014 (Source: Share Investors)
Conclusion
Despite weaker financial performance, BJAuto is rated a HOLD based on.attractive valuation & bullish technical outlook.
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, BJAuto.
Wednesday, December 03, 2014
Market Outlook as at December 2, 2014
FBMKLCI tested its recent low of 1766 yesterday - it went as low as 1764 - before rebounding. This market is searching for a bottom. Once that's established, we may see the market trading sideways or begin another upleg. See Chart 1 & Chart 2.
Chart 1: FBMKLCI's weekly chart as at Dec 2, 2014 (Source: BTX)
Chart 2: FBMKLCI's weekly chart from Apr 2011 to Dec 2, 2014 (Source: BTX)
The question is whether the horizontal support od 1760-1770 will hold on the next test. If we look at the index in July-September 2011, we saw FBMKLCI testing & trying to hold onto the horizontal line at 1470. When that support failed - due to persistent bad news flowing out of Europe - the index dropped to the next 2 levels of support at 1365 & 1300. If the same scenario is played out today, we might see the index testing the 1700 level or even the 1600 level.
Chart 3: FBMKLCI's weekly chart from Nov 2008 to Oct 2011 (Source: BTX)
Meanwhile European markets - represented by DAX - has recovered substantially over the past 4-5 weeks. I am doubtful that the DAX will be able to climb above its violated uptrend line. I believe the rally in DAX could have run its course and the correction is likely to kick in soon.
Chart 4: DAX's daily chart as at Dec 2, 2014 (Source: Stockcharts.com)
Meanwhile Nikkei and US markets - represented by S&P500 - are going higher. However, we can see that Nikkei will have to surpass the line connecting the recent peaks at 17700 and S&P500 will have to do the same at 2080-2100.
Chart 5: NIKK's daily chart as at Dec 2, 2014 (Source: Stockcharts.com)
Chart 6: S&P500's daily chart as at Dec 2, 2014 (Source: Stockcharts.com)
The question on everyone's lips is when will crude oil prices bottom. I believe that a bottom is not far away. WTIC broke its long-term uptrend line, S-S1 at USD94-95 (if we ignored the prices at the bottom in 2009). If we take the 2009 extreme prices into consideration, the tentative uptrend line support is now at USD50-60. Whether the support is at USD50 or USD60 depends on whether you are drawing the tentative uptrend line using the intra-day low prices or the end of month prices.
Chart 7: WTIC's daily chart as at Dec 2, 2014 (Source: Investorshub)
For those who are crying for higher crude oil prices, this article from Jeremy Grantham in Business Insider on shale oil is worth reading. Grantham, a well-established fund manager, believes that shale oil is a very large red herring. He pointed out that shale oil well's productive period of about 2 years renders many forecasts of US's upcoming crude oil productive prowess a pipe dream, like pigs can flying. Check it out for yourself.
Based on the above, I believe that we can consider slow buying in the market now, especially for O&G stocks that had been badly sold down. My preference is for large well-capitalized O&G stocks such as Armada & UMWOG.
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 any of the stocks or indices shown above.
Chart 1: FBMKLCI's weekly chart as at Dec 2, 2014 (Source: BTX)
Chart 2: FBMKLCI's weekly chart from Apr 2011 to Dec 2, 2014 (Source: BTX)
The question is whether the horizontal support od 1760-1770 will hold on the next test. If we look at the index in July-September 2011, we saw FBMKLCI testing & trying to hold onto the horizontal line at 1470. When that support failed - due to persistent bad news flowing out of Europe - the index dropped to the next 2 levels of support at 1365 & 1300. If the same scenario is played out today, we might see the index testing the 1700 level or even the 1600 level.
Chart 3: FBMKLCI's weekly chart from Nov 2008 to Oct 2011 (Source: BTX)
Meanwhile European markets - represented by DAX - has recovered substantially over the past 4-5 weeks. I am doubtful that the DAX will be able to climb above its violated uptrend line. I believe the rally in DAX could have run its course and the correction is likely to kick in soon.
Chart 4: DAX's daily chart as at Dec 2, 2014 (Source: Stockcharts.com)
Meanwhile Nikkei and US markets - represented by S&P500 - are going higher. However, we can see that Nikkei will have to surpass the line connecting the recent peaks at 17700 and S&P500 will have to do the same at 2080-2100.
Chart 5: NIKK's daily chart as at Dec 2, 2014 (Source: Stockcharts.com)
Chart 6: S&P500's daily chart as at Dec 2, 2014 (Source: Stockcharts.com)
The question on everyone's lips is when will crude oil prices bottom. I believe that a bottom is not far away. WTIC broke its long-term uptrend line, S-S1 at USD94-95 (if we ignored the prices at the bottom in 2009). If we take the 2009 extreme prices into consideration, the tentative uptrend line support is now at USD50-60. Whether the support is at USD50 or USD60 depends on whether you are drawing the tentative uptrend line using the intra-day low prices or the end of month prices.
Chart 7: WTIC's daily chart as at Dec 2, 2014 (Source: Investorshub)
For those who are crying for higher crude oil prices, this article from Jeremy Grantham in Business Insider on shale oil is worth reading. Grantham, a well-established fund manager, believes that shale oil is a very large red herring. He pointed out that shale oil well's productive period of about 2 years renders many forecasts of US's upcoming crude oil productive prowess a pipe dream, like pigs can flying. Check it out for yourself.
Based on the above, I believe that we can consider slow buying in the market now, especially for O&G stocks that had been badly sold down. My preference is for large well-capitalized O&G stocks such as Armada & UMWOG.
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 any of the stocks or indices shown above.
Wednesday, November 26, 2014
DLady: Improved performance but demanding valuation persists
Result Update
For QE30/9/2014, DLady's net profit increased by 18% q-o-q but dropped by 32% y-o-y to RM28.5 million while its revenue dropped by 10% q-o-q or 9% y-o-y to RM240 million. Revenue dropped q-o-q mainly contributed by lower volume sales. Nevertheless the profit before taxation for increased by RM5.8 million mainly due to cost management and favorable movement in raw material purchases
Table: DLady's last 8 quarterly results
Chart 1: DLady's last 26 quarterly results
Valuation
DLady (closed at RM45.90 yesterday) is now trading at a PE of 27 times (based on last 4 quarters' EPS of 169 sen). At this PE, DLady is deemed fully valued.
Technical Outlook
Since October 2012, DLady has been moving sideways around RM46-48. Its indicators have weakened steadily, with monthly MACD hooked down & William %R at the 50-mark. A breakout of the trading range of RM46-48 will point the way forward for the stock.
Chart 2: DLady's weekly chart as at Nov 25, 2014 (Source: Share Investor)
Conclusion
Based on demanding valuation & technical weakness, I would rate DLady as a REDUCE.
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, DLady.
For QE30/9/2014, DLady's net profit increased by 18% q-o-q but dropped by 32% y-o-y to RM28.5 million while its revenue dropped by 10% q-o-q or 9% y-o-y to RM240 million. Revenue dropped q-o-q mainly contributed by lower volume sales. Nevertheless the profit before taxation for increased by RM5.8 million mainly due to cost management and favorable movement in raw material purchases
Table: DLady's last 8 quarterly results
Chart 1: DLady's last 26 quarterly results
Valuation
DLady (closed at RM45.90 yesterday) is now trading at a PE of 27 times (based on last 4 quarters' EPS of 169 sen). At this PE, DLady is deemed fully valued.
Technical Outlook
Since October 2012, DLady has been moving sideways around RM46-48. Its indicators have weakened steadily, with monthly MACD hooked down & William %R at the 50-mark. A breakout of the trading range of RM46-48 will point the way forward for the stock.
Chart 2: DLady's weekly chart as at Nov 25, 2014 (Source: Share Investor)
Conclusion
Based on demanding valuation & technical weakness, I would rate DLady as a REDUCE.
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, DLady.
Johotin: The recovery begins?
Results Update
For QE30/9/2014, Johotin reported a pre-tax profit of RM4.0 million as compared to a pre-tax loss of RM548k incurred in QE30/6/2014. Revenue rose 54% q-o-q to RM91 million due to the commencement of operation if its new factory in Teluk Panglima Garang, Selangor. which is involved in milk powder business and the manufacturing of retail packs for milk powder.
In the past 2 quarters, its financial performance was affected by product quality issue in the F&B segment. This problem arose due to the cans not totally dry when they were passed through the dryer in its production process line. The water residue inside the cans led to yeast built-up & the contamination of the product.
In QE30/6/2014, Johore Tin replaced the affected which led to a drop in revenue fell to RM58.8 million from RM61.5 million and the ensuing losses. This issue was fully settled by QE30/9/2014 and would not have any impact on Johotin's results going forward.
Table 1: Johotin's last 8 quarterly results
Chart 1: Johotin's last 20 quarterly results
Valuation
Johotin (closed at RM1.44 yesterday) is now trading at a trailing PE of 11 times (based on last 4 quarters' EPS of 13.2 sen). At this PE, the stock is deemed fully valued. However, the company expects revenue to grow to RM350 million in FY15 and based on profit margin of 8.6%, its net profit could be RM30 million. this would translate to a EPS of 32 sen. Assuming a conservative PE of 10 times, Johotin's fair value would be RM3.20.
Note: The revenue ot RM350 million in FY15 will consist of revenue from F&B segment of RM250 million (from new business operation carried out in the new factory in Selangor) and steady growth of 5-10% from tin manufacturing which will include a new 6-color flat sheet printing line to be commissioned in January 2015.
Technical Outlook
Johotin is in an uptrend line, with support at RM1.40.
Chart 2: Johotin's monthly chart as at Nov 25, 2014 (Source: Share Investor)
Conclusion
Despite the improving financial performance and positive technical outlook, Johotin is a good stock for long-term investment.
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, Johotin.
For QE30/9/2014, Johotin reported a pre-tax profit of RM4.0 million as compared to a pre-tax loss of RM548k incurred in QE30/6/2014. Revenue rose 54% q-o-q to RM91 million due to the commencement of operation if its new factory in Teluk Panglima Garang, Selangor. which is involved in milk powder business and the manufacturing of retail packs for milk powder.
In the past 2 quarters, its financial performance was affected by product quality issue in the F&B segment. This problem arose due to the cans not totally dry when they were passed through the dryer in its production process line. The water residue inside the cans led to yeast built-up & the contamination of the product.
In QE30/6/2014, Johore Tin replaced the affected which led to a drop in revenue fell to RM58.8 million from RM61.5 million and the ensuing losses. This issue was fully settled by QE30/9/2014 and would not have any impact on Johotin's results going forward.
Table 1: Johotin's last 8 quarterly results
Chart 1: Johotin's last 20 quarterly results
Valuation
Johotin (closed at RM1.44 yesterday) is now trading at a trailing PE of 11 times (based on last 4 quarters' EPS of 13.2 sen). At this PE, the stock is deemed fully valued. However, the company expects revenue to grow to RM350 million in FY15 and based on profit margin of 8.6%, its net profit could be RM30 million. this would translate to a EPS of 32 sen. Assuming a conservative PE of 10 times, Johotin's fair value would be RM3.20.
Note: The revenue ot RM350 million in FY15 will consist of revenue from F&B segment of RM250 million (from new business operation carried out in the new factory in Selangor) and steady growth of 5-10% from tin manufacturing which will include a new 6-color flat sheet printing line to be commissioned in January 2015.
Technical Outlook
Johotin is in an uptrend line, with support at RM1.40.
Chart 2: Johotin's monthly chart as at Nov 25, 2014 (Source: Share Investor)
Conclusion
Despite the improving financial performance and positive technical outlook, Johotin is a good stock for long-term investment.
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, Johotin.
Tuesday, November 25, 2014
Brahim: Next upleg beckons?
Not long ago, Brahim was a hot stock. It has a fast-growing food business - supplying meals to airlines - and another sure winner waiting for take-off - the sugar refinery in Sarawak. After its biggest airline customer, MAS suffered the unprecedented loss of 2 planes in less than a year and has to undergo adrastic restructuring, Brahim's future looks rather bleak. It may have to lose the profitable airline meal supply business when the existing contract with MAS is renegotiated.
From the charts below, we can see that Brahim has dropped from its recent high of RM2.70 recorded in March 2014 to a recent low of just below RM1.20. It tested its long-term uptrend line and rebounded.
Chart 1: Brahim's weekly chart as at Nov 24, 2014 (Source: Tradesignum)
From the daily chart, we can see that Brahim has broken above the downtrend. In addition, a short-term uptrend line has formed. If the stock on weakness does not break below the RM1.40, the recovery for Brahim could be starting.
Chart 1: Brahim's daily chart as at Nov 24, 2014 (Source: Tradesignum)
Based on technical breakout, Brahim could be a good stock for medium-term investment.
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, Brahim.
From the charts below, we can see that Brahim has dropped from its recent high of RM2.70 recorded in March 2014 to a recent low of just below RM1.20. It tested its long-term uptrend line and rebounded.
Chart 1: Brahim's weekly chart as at Nov 24, 2014 (Source: Tradesignum)
From the daily chart, we can see that Brahim has broken above the downtrend. In addition, a short-term uptrend line has formed. If the stock on weakness does not break below the RM1.40, the recovery for Brahim could be starting.
Chart 1: Brahim's daily chart as at Nov 24, 2014 (Source: Tradesignum)
Based on technical breakout, Brahim could be a good stock for medium-term investment.
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, Brahim.