LogicTrading Analysis

Author: LogicTradingAnalysis   |   Latest post: Mon, 23 Dec 2019, 5:56 PM



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We get to know some famous investor and guru start buying up NOTION ! That's why lately big move up, and we get the opportunity to studies it and found that more to go !! You should read why we said so, and why they buying ! 

NOTION (8803) catch our attention as we think recent rise is just the beginning and still many people haven't notice this stock going to be next big black horse. To cut short, we look at the chart first. 



Recent stock price has been hitting the past two big trend high, and this round we expecting once break RM 1.0 then a super rally will come. Do watch very carefully coming few day movement as it will happen breakout soon. 


NOTION have been strong uptrend recently, recent price have hit support and higher low have been form, we expecting a big spike up will come very soon.

We have some reason that NOTION will further up as the company has been very positive with this year earning, we can get the information from latest quarterly result.


We can see that management already targeting a sales revenue of RM 320 mil for coming year 2020. This is a big increase compare to last year, which will be a confirmation of coming February result will be improve greatly. 

Even they expect growth can be go to RM 400 mil !! Why so confident? Because they have secure a new Big customer ! 

LOOK at past few year Revenue only average RM 230 mil, imagine when year 2020 Revenue hit RM 320 mil ! which is more than 5 year of new high ! Remember this and later we study how much price potential to go !


So stock price should easily go above RM 1.30 which is the high during year 2017.


News have been reporting they going to have strong growth in coming years. But how strong it could be? Let us share with you.


The key is their new business EMS !


They have compared themself with VS, SKPRES AND ATAIMS, which all riding the big bull before due to one same client = DYSON ! 

Any company manage to grab contract from DYSON have fly double up ! Because DYSON is superb ! 




If NOTION go PE 15 like other PEERS 




Just look at overall peers PE ! Then you will notice NOTION PE is super low, super undervalues compare to peers ! How?? 


Since company expecting a very good result for year 2020, and even better than year 2019, we take 



Since management expecting RM 320 mil revenue, which is RM 80 mil per quarter, we do not greedy, just take 10 million net profit per quarter to calculate EPS, that will give out annual net profit of 40m. 


40 Million profit / NOTION 334.74m total share = RM 0.1194 EPS


Based on this forward PE calculation, last Friday closing price RM 0.955 is only about PE 8 ! (RM 0.955/ EPS RM 0.1194 = PE 7.99)


Even the boss also target their stock price to go 3x (RM 3.0+) by year 2024. It's a very bullish statement as the boss already see their new business going to boost up their earning !


Moreover, the company are highly possible to call for bonus issue next year !





Look at Share capital and retained profit, next quarter profit again then retained profit already more than share capital, this mean company can easily call for a 1 to 1 bonus issue !! That will definitely boost stock price higher, this can look at recent case like MI and UWC, both called BONUS and big fly up ! 


As a conclusion,


1. NOTION will start a big rally up like DUFU, PENTA, FRONTKN, and you should not miss it.
2. NOTION new business going to boost coming year earning. 
3. NOTION PE still very double low compared to peers.
4. NOTION going for a strong breakout from long term downtrend line soon.

5. NOTION very soon can give bonus issue by next year and price will big up like MI, UWC.

My own personal "hope" for short term price to reach RM 1.10, mid term hope RM 1.30, long term hope RM 2.50.

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Labels: NOTION

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