TECHNICAL AND FUNDAMENTAL ANALYSIS

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STAR (6084) - Fundamental & Technical Analysis

February 24, 2019

 Technical Analysis

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- STAR shares price entered a bearish trend and drop by 68% since Sept 25, 2017.

- It completed downward elliott wave (ABCDE) on Dec 18, 2019 and shares price were consolidated with 26 trading days.

- STAR shares price starts a upward trend and trade above EMA 20, 60, 120 recently.

- MACD and RSI are bullish and overbought.

- STAR immediate resistance at RM 0.865.

- Support line(1): RM 1.000

- Resistance line(1): RM 0.695

 

Fundamental Analysis

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Market Prospect Ratios

- EPS decreased significantly in past 5 years and it reflects into shares price accordingly.

- If we are dividend investor, depreciation in shares price will diminish gain in dividend at all.

- STAR also not a good dividend payer based on Dividend/EPS which is less than avg. 1.52%

Profitability Ratio

- Increase in Profit Margin due to net sales decrease faster than/higher than net income which is not a good indicator for a company performance. 

- This situation reflects STAR unable to sustain company probabilities and market shares.

- Decrease in Return on Capital Employed and Equity shows another red flag for company performance. Direction of company investment unable to generate better income in the past 5 years.

- There is no sales collection issue in STAR due to account receivable turnover ratio don't change significant in past 4 years. 

 - With comparison in liquidity ratios, it shows deteriorate in Cash and Cash Equivalent and total current assets in past 5 years.

- STAR might unable to sustain stable dividend payout in future.

- There is no issue in Solvency ratio. Operation of STAR still able to meet their obligations accordingly.

 

 

 

 

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