Profile

• Listed on 24 November 2005

• A component of the FBM ACE Index under the Other Consumer Services industry

• Market Capitalisation of RM 215 million

• Financial Year End 30 September 2016

• Currently in the 3rd Quarter

• 3rd Quarter results ending 30 June 2016 to be announced by August 2016

Background and Core Business

• Investment holding company dealing with the development and promotion of IT learning programs and services (Education Technology solutions and services)

• These are divided into three core activities i.e. STEM (Science, Technology, Engineering and Mathematics), Digital School and IESS (Integrated Education Solutions and Services)

• Provides these services to kindergartens, primary and secondary schools

• Currently looking to expand into Thailand and Philippines

Financial Brief and Ratios (Historical)

• Revenue has experienced a y-o-y growth of +30% with net earnings and EPS growth of +42%

• PER is as expected for a growing company like Eduspec

• Eduspec has not declared any dividend payments

• ROE is considerably on the low side

• The company’s gearing is low

iVolume Spread Analysis (iVSA) & comments based on iVSAChart software – Eduspec

• This is the one-year weekly chart for Eduspec ending 3 June 2016

• Strong hands emerged to buy the stock in late August 2015 as shown by the Sign of Strength (green arrows) putting a halt to the prior sell offs

• Prices subsequently resumed its sideways congestion

• Heavy supply was met around the RM0.34 – RM0.35 level and prices retreated back to the trading range

• Sign of Weakness (red arrow) appeared in March this year indicating more supply around the RM0.30 level

• In spite of that, prices remained resilient and moved sideways with low volume hinting at possible accumulation

• For the week ending 3 June 2016, a Sign of Strength (green arrow) appeared which puts the odds in favor of accumulation

• Traders/investors should take note that if prices start to rally from this level with bullish volume then we are likely to be looking at a commencement of an uptrend

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This article only serves as reference information and does not constitute a buy or sell call. Make your own assessment before deciding to buy or sell any stock.