Rebound Opportunity?

Signature International is Malaysia’s leading public listed kitchen cabinet manufacturer with businesses in retail, project, imported appliances, glass and aluminium. With a bleak outlook for the property sector as well as a slow down in construction projects, Signature’s share price has fallen significantly. Would we see any share price rebound in the near term?

Technically, we hope to see some support at RM0.75, with potential rebound opportunity to resistance point of RM0.90.

7246-my

Fundamentally, at current share price of RM0.80 per share, it is within the high-level desktop indicative valuation range of RM0.63 – RM0.90 .

For illustration only:

sign_equity-range

Personally, I may  consider a possible trading strategy of entering either at RM0.75 (more conservative entry point will be at RM0.63) and attempt to catch an exit upon a potential rebound to RM0.90 per share. We may see some short term support for the company’s share price in view of the on-going share buybacks conducted by the Company. We should be cautious that the future prospects (especially for property sector) will continue to be challenging for year 2017. Nevertheless, the Company appears to be positive for the coming year (as per their latest Q1FY17 quarterly financial result):

SIGN_Propects.png

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

Markets Observer + Food Lover

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