From the table & chart below, we can see that profits continued to rise despite a drop in turnover. This is a reflection of how much the company is benefiting from the weakening of our MYR. This may not be a good thing when the tide goes out.
Table: FLBHD's last 12 quarterly results
Chart 1: FLBHD's last 12 quarterly results
Valuation
FLBHD (closed at RM2.69 as at 9.20am today) has a trial PER of 10.8 times (based on last 4 quarters EPS of 25 sen). At this PER, FLBHD is no longer a cheap stock as posted earlier. I would rate it as fully valued at this point of time.
Techncial Outlook
FLBHD's uptrend kicked in after it broke above the RM1.80 neckline of the inverted head-and-shoulders formation (highlighted here). Its potential target is about RM2.90.
Chart 2: FLBHD's monthly chart as at Nov 17, 2015_9.20am (Source: ShareInvestor.com)
Conclusion
Based on substantial price run-up and full valuation, FLBHD is rated a SELL INTO STRENGTH as it comes near the RM2.90 mark.
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, FLBHD.
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