Waiting For Pullback

ORNAPAPER BERHAD is a leader in the corrugated boards and carton manufacturing industry. Incorporated in 24th July 1990, with its humble beginning in rented premises the company commenced its business activity as a manufacturer of corrugated cartons. Riding on the economic boom of the early 90s and with a continuous investment programme, a new high-technology production and development facility was made available in October 1996.

The company expanded its operation to become a corrugated board manufacturer. With the existing facilities, the company is able to produce 84,000 M/T of corrugated boards and cartons per annum. Strategic service points have been set up in many states in Peninsula Malaysia to provide service and products with the highest possible quality aiming at complete customer satisfaction and delight. Armed with the latest technologies and innovations from around the globe, ORNAPAPER is in the forefront of corrugated boards and carton manufacturing, lifting packaging standards in Malaysia to a new level.

Orna’s share price has recently spiked up (traded way above the Keltner’s upper band) with considerable amount of volume. For potential entry opportunities, one may consider waiting for a pullback with potential entry point around RM1.05-RM1.06. Target profit price may be around RM1.26, with possible stop loss at RM0.86.

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In terms of indicative valuation, a high-level desktop valuation is shown in the following table (strictly for illustration) with a maximum target price of RM1.55 and a minimum target price of RM1.01:

Orna Valuation.png

 

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In terms of valuation multiples, they appear not to be unreasonable:

PBRPER

In terms of prospects, management expects a reasonable performance for year 2017.

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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 MENTIONED IN THE ARTICLES

Author: Ken Utau

Markets Analyst. Forecaster & Predictor. Statistician. Data Explorer & Scientist. Specialize In Data, Market & Security Analysis.

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