The future is Brite for this stock

Brite future ahead?

lifeisajourney
Publish date: Sun, 16 Aug 2020, 10:36 PM
lifeisajourney
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Can this stock breakout its new high again? How far can it go?
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Last Monday, some of the stocks went limit up and thereafter were subjected to UMA (unusual market activities) queries. While all the directors have publish their comments regarding this, there is particularly one stock that caught my attention. The company is Brite-tech Bhd. 

 

Background of the company - Brite-Tech Bhd

The company main's business is in the field of intergrated water purification and wastewater treatment solutions. There were comments in I3 saying that as Btech's subsidiary is involved in supplying chemical and consumer products, it might venture out to other field. While this is not confirm, it is yet to be seen if this will come through. 

 

Btech's Y-o-Y Profit after Tax 

Year Btech's Profit after Tax
2019 RM 6.04 mil
2018 RM 4.28 mil
2017 RM 4.00 mil
2016 RM 4.95 mil

The company has been achieveing profit growth since year 2017, with 2019 seeing a spike of ~50% profit growth. 

Not only that, the company has been giving out dividend over the years, with dividend yield at ~4%, this would definitely be a good idea to hold it for long term as well. 

 

Now that we've understand the background of the company, what really caught my attention is the technical chart of the stock. 

Technical Chart 

Highlighted in the blue box (marked number 1), you can see that the volume spike, while the price has been hovering at about 0.2-0.35 prior to the limit up candle. With the volume increasing and the price going nowhere, it means that there is accumulation going on. 

Thereafter, on Monday (Aug 10), it surprises everyone that the share went limit up. While the share price has come down since its limit up price of 0.68, with it has not broken the opening price of 0.40. With the symmetrical triangle formed currently, any breakout (whether up or down) would hint that the price will either go up further or go down lower.   

Given that accumulation is between range of 0.2 - 0.35, I would think that the price would breakout and form an ascending triangle pattern soon.

On top of that, the current closing price is below its 7 days Moving Average, but hovering above its 14 & 100 days MA, providing a strong support for the share price. 

 

 

It would be interesting to see Brite-tech Bhd's price in the coming weeks. While it is still a mystery as to why the shares would limit up on Aug 10, i believe that the shares has more room to grow as it has already break above its previous high.

 

 

*I'm just a newbie in this field and this is just my thoughts. My views are not a buy/sell call. This is just my 2 cents on this counter. 

BTECH (0011)
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