Another stock that took a sharp tumble last Friday is UIADEV. There is no news to account for the drop. I normally explain such phenomenon to selling by major shareholders. If that's true in this case, then we might not have seen the end of the selling.
UOADEV is a very well-managed property investment and development group. This could well be a buying opportunity to get into a very dynamic company.
UOADEV (closed at RM2.35 last Friday) is now trading at a trailing PER of 6.1x (based on last 4 quarters' EPS of 38.38 sen) and at a Price ot Book of 1.0x (at a NTA of, with a price target of RM3.00 on 24 August.
Chartwise, the stock is still in a long-term uptrend which fit into a 3-fan uptrend pattern. Currently, UOADEV is resting on the middle fan-line, S-S2 at RM2.35. If this support failed, it will likely drop to the 3rd fan-line with support at RM2.00.
I believe UOADEV could be a buying opportunity at current price. Given the current weak market condition, your buying should be carried out gradually. Good luck!
Chart: UOADEV's weekly chart as at Oct 20, 2017 (Source: Malaysiastock.biz)
Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.
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