Bursa Master
DBHD - SHORT TERM BULLISH ENTRY SIGNAL APPEARED !!!
BURSAMASTER
Publish date: Tue, 11 Jun 2019, 06:49 PM
DBHD - SHORT TERM BULLISH ENTRY SIGNAL APPEARED !!!
(PERSONAL TRADING TP 0.57, LONG TERM TP 0.70)
(DBHD WA TRADING TP 0.12, LONG TERM TP 0.20)
DBHD has plans to revive its bauxite mining operation which should generate good income streams in the coming years ahead.
DBHD closed the day at 0.465 whilst its warrant closed at 0.095.
It made a resistance breakout at 0.45 on increased volume of of 2.75 mil shares. Subsequent resistances at 0.490 and 0.57 which is it 52-week high.
With the recent PH government decision to put a hold on bauxite mining ban coupled with China planned restriction on sale to the US, bauxite mining should come as a bonus to DBHD.
Furthermore, the bauxite sits on more than 459.82 acres of land which can be utilised for development in future.
Fundamentally, DBHD is a considerably good company; currently trading at only P.E. ratio 7.08; EPS 6.1 & NTA of 54.55 cts.
NOSH is only 318 mil shares.
1. Highlights of DBHD Assets & Potential Earnings
Below to mention a few potential earnings for DBHD :
1. Bauxite - 459.82 acres of land in Kuantan (biggest in Pahang), profit margin expected RM 150 million for 3 years
2. Development Projects - Damansara Alif, Negeri Sembilan. All JV as land owner with profit guarantee
3. Metro Parking - Rapid expansion in Phillippines and Singapore. Possibly to secure in near term
4. Pengerang Project - Managing facilities including accommodation and infra
2. Private Placement Indicative at 50 cents - for expansion & bauxite mining
DBHD had proposed an undertaking a Private Placement at indicative price of 50 cents (refer extract below).
RM 12.8 million will be utilized for business expansion and RM 2.3 million for bauxite mining activities.
In my opinion, this purpose of fund utilization is very positive as the funds will be used to expand company earnings (which benefit shareholders most) and NOT to pay or pare down debt/interests.
3. Technical Analysis - Breakout of Downtrend (Daily)
Refer its daily chart below. A few bullish signals appeared :
1. Breakout of downtrend channel after 3rd attempt
2. Daily MACD crossover
3. Close to ICHIMOKU break out at 47 cts
4. Significant volume increase
4. DBHD - Warrant A (DBHD WA) - Lower Capital Entry into DBHD
Refer below DBHD WA profile captured from KLSE SCREENER website for those looking at alternate cheaper entry, to consider the warrant due to below:
a. Considerably long life to go - 15 months to go to expiry at 27 November 2020
b. Strike price of warrant is 58 cents, currently mother share trading at 46.5 cents. The gap between current price and strike price is not big, and once mother share crosses 58 cents the warrant movement will be faster
c. Reasonable premium of 45% for a warrant with 1.5 years life
LET’S SEE HOW THE SHARE PRICE MOVEMENT IN THE NEAR FUTURE FORBEARING ANY GOOD CORPORATE NEWS.
Disclaimer : The above opinion is not a BUY CALL but only sharing my observations.
BURSAMASTER
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