Short Term

Given the prevailing uncertainty with equity markets, one may intend to consider short term trading opportunities. Short term trading will typically employ technical analysis as primary tool.

Using CIMB iTrade filtering tool, we combine both technical and fundamental criteria to screen for potential short term trading opportunities as of 22 October 2016. The screening criteria are stated as follows:

  • Exchange: Bursa Malaysia
  • RSI < 30%
  • ROE > 10% (5 Year Average)
  • Current ratio > 1.25x
  • Total Debt / Total Asset <50%
  • P/E < 18x
  • P/B < 2.5x

FilterScreen.png

The screening process returns three counters. At this juncture, we are not particularly keen with Signature International / Sentoria as they are closely correlated with the property sector which faces significant headwinds.

Tomypak Berhad

Tomypak Berhad being one of the leading converters for flexible food packaging materials in Malaysia, we believe in the continuous introduction of new technologies and facilities. Coupled with veteran personnel equipped with professional skills and customer oriented services, be assured quality satisfaction in your flexible packaging material needs.

  • Established in 1979
  • Public listed on the Malaysia Stock Exchange ( Bursa ) in 1996
  • 1st HACCP certified flexible packaging materials company in M’sia since 2003
  • Workforce consist of a strong 400 employees
  • Built Up Area 14,018 square metres

Technical

7285.MY.jpeg

With three MAs facing downward, this stock may potentially face downtrend in the short term. Nevertheless, RSI indicator seems to suggest that this stock is in oversold position. Based on Fibonacci retracement method, we may expect potential support point at around RM1.41, with potential rebound back to RM1.61 – RM1.74.

Fundamental

Fundamental.png

Based on Scenario 1 – Scenario 5, the indicative valuation range is between RM1.44 and RM2.17 (simple desktop analysis)

Analysts View: Generally Positive

HLB.png

Recent Buybacks: Support For The Share Price

BuyBack.png

Business Prospect: Challenging But Resilient

Prospect.png

Potential Trading Valuation Range

There may be potential trading opportunity in the price range of between RM1.41 – RM1.75.

Nevertheless, the above analysis is a simple high-level desktop analysis. Further detailed analysis shall be required.

DISCLAIMER: THIS IS A PERSONAL BLOG AND SHALL NOT BE RELIED IN WHATSOEVER MANNER BY ANYONE. ALL ARTICLES CONTAINED IN THIS SITE ARE FOR INFORMATION AND ILLUSTRATIVE PURPOSES ONLY AND DOES NOT PURPORT TO SHOW ACTUAL RESULTS. IT IS NOT, AND SHOULD NOT BE REGARDED AS INVESTMENT ADVICE OR AS A RECOMMENDATION REGARDING ANY PARTICULAR SECURITY OR COURSE OF ACTION. SOURCES USED IN THIS SITE HAVE NOT BEEN INDEPENDENTLY VERIFIED FOR ACCURACY, COMPLETENESS AND TIMELINESS. YOU SHOULD SEEK INDEPENDENT AND PROFESSIONAL INVESTMENT ADVICE IN REGARD TO YOUR INVESTMENT DECISIONS. THE AUTHOR MAY HOLD POSITIONS IN THE SECURITIES OR RELATED INSTRUMENTS MENTIONED ABOVE.

Author: Ken Utau

Data Scientist, Markets Analyst and Food Lover

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