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
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 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
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.
Based on Scenario 1 – Scenario 5, the indicative valuation range is between RM1.44 and RM2.17 (simple desktop analysis)
Analysts View: Generally Positive
Recent Buybacks: Support For The Share Price
Business Prospect: Challenging But Resilient
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.
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