VITROX (0097)


Technical Analysis

  1. 150 MA 50 MA 30 MA bullish with 45 degree.

  2. MACD bullish.

  3. RSI bullish.

  4. Support point (1) 4.10 & Support Point (2) 3.78

  5. Resistance point unclear due to stock is testing higher high

Fundamental analysis

  1. Proven track record technology development.

  2. Only record one time negative PBT on 2008 - Global crisis/subprime crisis

  3. Export proceed earner so advantage on RM weakening

  4. Revenue and Profit in 1st quarter of 2017 achieve and beat revenue and profit in 1st quarter of 2016 (29.74% and 28.59%). The data shown strong earning and it might beat last year 2016 revenue and profit at the end of 2017.

  5. Based on fundamental analysis, bonus issue is a signal that the company is in a position to service its larger equity. What it means is that the management would not have given these shares if it was not confident of being able to increase its profits and distribute dividends on all these shares in the future.

  6. Thus, VITROX management have certain confident and assurance of future prospect of their company

Strategic

  1. VITROX shares price increase significantly after bonus issues.

  2. MACD and RSI haven reach overbought stage as per charting. Thus, shares price might hit higher high.

  3. Due to T+3 Payment Day which is around 28/07/2017, it might have price consolidation.

  4. Bonus issues diluted EPS and affect company Book Value/Accumulated profits if company cant maintain their performance.

  5. Best way to enter VITROX counter during consolidation of shares price


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