Friday, February 21, 2020

BAT: What Are They Smoking?

As at 9:15 a.m., BAT made a high of RM14.10. This strong rally could be due to its results announcement for QE31/12/2019, which is the 4Q2019. 

From the table below, we can see that the quarterly revenue, profits and dividend dropped when compared to those of 4Q2018 (see point 1). In addition, its full-year revenue, profits and dividend also dropped when compared to FY2018 (see point 2).

Table: BAT's last 8 quarterly results

Technically speaking, BAT has surpassed its downtrend line at RM13.00. This may signal the end of its downtrend but it may not neccesarily lead to an uptrend rally anytime soon.

Chart: BAT's daily chart as at Feb 20, 2020 (Source: Malaysiastock.biz)

Based on the above, I think the current sharp rally may not sustain.

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