2016年8月25日星期四

转贴:TEKSENG: Bound to Rebound (Morning Session)

Author: smartrader2020   |   Publish date: Thu, 25 Aug 2016, 11:21 AM 

Post-2QFY16 results, the share price has been comically in downtrend following profit taking by traders and force sell by latecomers. Judging from daily-minutes chart, the stock is already at the bottom, where it is on fibonacci retracement of 61.8%. Other indicator, RSI is in oversold zone at lowest point of 21 level. In short-term, the stock is bound to rebound as selling is overdone and traders and investors may want to take opportunity to establish position in this knee-jerk price reaction at bargain RM1.24-RM1.25. Traders can look at between RM1.34-RM1.36 as exit points. Along the way up towards short-term exit points, some remaining force sellers may put pressure on the share price. Thus, stay calm and do not get panic!
Fundamentally, the stock still has more upside potential to approx. RM2.04 based on conservative PER of 10x to annualised FY16 earnings, (still below 3-year average PER of 14x). To recap, Tekseng's 1HFY16 net profit jumped by more than 4x to RM31.31mn or 10.18sen EPS from RM5.82mn or 2.39sen EPS in 1HFY15 due to higher revenue across all segments of totalling RM290.81mn from RM137.83mn in 1HFY15. Outlook remains on the sunny side as evidently shown in 1HFY16 results performance despite uncertainty in global economies.
Should the stock maintains above RM1.17, mid-longer-term bullish view remains intact with an expectation offundamental TP of RM2.04 (during the period from now till end of the year 2016). It will retest RM1.43 for the third attempt before continuing to move higher from there.

Source: Online trading platform