Lotte Chemical Titan Holding Bhd (Trading Buy)
• LCTITAN’s share price has fallen 49% since May 2021 from RM3.54 to close at RM1.81 yesterday. With the share price currently fluctuating near its 52-week low of RM1.80, which represents an intermediate support level, a technical rebound could be anticipated.
• Chart-wise, the stock price is expected to reverse direction as both the stochastic and RSI indicators are set to climb out from the oversold zone.
• Hence, we expect the stock to move up and test our resistance thresholds of RM2.00 (R1; 10% upside potential) and RM2.10 (R2; 16% upside potential).
• Conversely, our stop loss price has been identified at RM1.62 (representing a 10% downside risk).
• Business-wise, LCTITAN is involved in two business activities: (i) the manufacture and sale of polyolefin products, and (ii) the manufacture and sale of olefins & derivative products.
• Earnings-wise, LCTITAN reported a net loss of RM145.9m in 2QFY22, compared with a net profit of RM382.3m in 2QFY21 due to an increase in feedstock costs and a decline in the results of associated company, Lotte Chemical USA Corp. This brought its 1HFY22 bottomline to a net loss of RM41.9m (from net profit of RM822.3m previously).
• In terms of valuation, the stock is currently trading at Price/Book Value multiple of 0.32x (which is below the minus 1 SD level from its historical mean) based on its book value per share of RM5.59 as of end-June 2022.
NCT Alliance Bhd (Trading Buy)
• The share price of NCT has trended downwards from the peak of RM0.73 in March 2021 before closing at RM0.42 yesterday.
• On the chart, the share price – which has bounced off from a low of RM0.36 recently – is expected to climb further due to: (i) the rising Parabolic SAR trend, (ii) the crossing of the DMI Plus above the DMI Minus, and (iii) the 12-day moving average still hovering above the 26-day moving average following the MACD golden cross in late July.
• Riding on the upward momentum, we expect the stock to shift higher and test our resistance thresholds of RM0.47 (R1; 12% upside potential) and RM0.49 (R2; 17% upside potential).
• Our stop loss level is pegged at RM0.37 (representing a 12% downside risk).
• Fundamentally speaking, NCT is a real estate developer which offers property development services for various housing projects with a geographical presence mainly in Genting Highlands and Penang.
• Earnings-wise, the group reported a net profit of RM8m in 1QFY22 (+10179% YoY) driven by stronger sales from new property launches as well as completed stocks.
• Valuation-wise, the stock is currently trading at Price/Book Value multiple of 0.92x (or approximately at minus 0.5 SD from its historical mean) based on its book value per share of RM0.455 as of end-March 2022.
Source: Kenanga Research - 5 Aug 2022
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Created by kiasutrader | Aug 23, 2024
Created by kiasutrader | Aug 23, 2024
DividendGuy67
Hmmm ... if anyone had followed both "trading" calls on LCTITAN and NCT, that would be 2 out of 2 losses. I suppose the next trade might win or lose.
If technical trading profits is only a coin toss (50/50), isn't this a losing game after commissions? All that "technical analysis", time spent - isn't that just a waste of time?
Where's the LONG TERM proof that these "technical analysis" really makes monies, really grow your account after 5, 10 years?
2022-10-23 13:21