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Author: Investhor   |   Latest post: Sun, 15 Sep 2019, 9:17 PM

 

PARLO (BSKL 0022) - Potential Undiscovered Pearl ??

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Hey guys,

It's been a while since I wrote an article. Please feedback below to me on how often would you like me to post articles on my opinions of stocks. If there is a demand for it, I will try to commit to writing more.

Anyways guys today I would like to highlight this hidden pearl which I had spotted recently :

PARLO (BSKL Code 0022)

Short to Mid Term, TP : 13-15c, Long Term TP : 20-25c

Here are my thoughs on this stock:

1. Low Total Float 

Refer image below taken from latest Annual Report on the list of top shareholders

Total number of shares of this company is 364 million. So far there is one large shareholder with 250 million (69%) shareholding. Therefore making the effective float about 114 million (32%) only as the major shareholder will most probably hold onto it.

Usually, shares with lower effective float tend to move in a trend stronger than those with higher effective float shares.

2. Technical Analysis - Major MACD Crossing on Weekly Chart

Refer image below of the Weekly chart of PARLO

As you can see, PARLO has been on a downtrend for about 15 months now since it was unsuspended in January 2018. since then, there had been 3 attempts to break the downtrend (circle 1, 2 and 3) but failed. It has then continued downtrending. 

However, recently we can see in Circle 4, that the solid closing on the current week had made it broke the downtrend channel. This move is also supported by a crossing of MACD in Circle 5, and also building volume in Circle 6. From all the above, we can undoubtly deduce that the stock has turned bullish.

3. Financial Analysis - Improvement in Revenue and Decreasing Losses

Refer image below taken on the Quarter Results

We can see in Circle 1 that recently PARLO had recorded highest revenue out of the 4 quarters, and that the company losses are decreasing (circle 2). Therefore, from this trend, it is likely that the company will be able to turn the losses into profits in coming quarters if management is able to control the costs.

Also, company has estimated good prospects for coming quarters (extract from quarter report) :

PARLO expects performance to improve in coming quarters after their implementation of new strategies and initiatives.

CONCLUSION

Based on my opinion, PARLO is an undiscovered pearl due to following simple reasons:

a. Low Float - ability to trend strongly without big resistance

b. Bullish Chart - breakout of downtrend and MACD crossing on weekly chart in increasing volume

c. Improving FA - improving revenue, reduced losses, and good prospects ahead

Thanks for reading and see you in the next post.

Yours Truly,

INVESTHOR

 

 

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Labels: PARLO

Related Stocks

Chart Stock Name Last Change Volume 
PARLO 0.10 +0.015 (17.65%) 10,549,500 

  Be the first to like this.
 
Winmore88 Wow! Monday parlo seems like going to hit 12c!
16/03/2019 9:25 AM
Investhor @Winmore88 - let's see how the market reacts to this movement ya..hope for the best
16/03/2019 12:32 PM
Investhor Do let me know how often do you guys like me to post my opinions on KLSE stocks ya guys
17/03/2019 12:17 AM
Winmore88 Yes. Thanks investhor
17/03/2019 7:08 AM
Trouble Huat Sudden volume entering. Something is brewing. Hehe
17/03/2019 1:52 PM
ramada I like your writing style. Hope you guys can earn from this Parlo.
17/03/2019 5:43 PM
Investhor @ramada - thanks for the feedback. Do let me know how often would you like me to post my ideas per week
17/03/2019 8:37 PM
guerillaranger Good write up investhor looking at the chart and volume guessing that something might be brewing..thanks for info
17/03/2019 10:18 PM
guerillaranger Hi investhor do you mind to post such articles if you manage to find any other gems in klse
17/03/2019 10:21 PM
Investhor @guerillaranger - sure thing, starting from next week onwards, i plan to publish 2 articles a week to share my ideas and thoughts on undervalued gems..hopefully i can commit to this ya..thanks for the feedback
17/03/2019 10:24 PM


 

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