AYS price chart below shows that it has been going up every day in the last 8 trading days which indicates that its price trend reversal is confirmed. That also means that it is quite safe to buy an up-trending stock.

What is a stock price chart?

It is a record of the daily price movement. If there are more buyers than sellers its price will go up. On the contrary, if there are more sellers than buyers its price will drop. In the case of AYS, there were more buyers than sellers on each of the 9 trading days. That means it is quite safe to buy AYS.

Share placement

On 15 October, the AYS company placed out 38 million AYS shares which is equivalent to 10% of the total issued shares at 76 sen each to institutional or big buyer when the open market price was 88 sen. The big buyer must know the company operation and its profit growth potential before he decided to buy so many AYS shares. No investor would buy 38 million AYS shares unless he knew the quality of people managing the company.

AYS is undervalued 

Its 2^nd quarter ending Sept EPS was 6.51 sen and its 1st quarter ending June EPS was 8.5 sen, totalling 15 sen for 1^st half year.  All these profits were achieved during the Covid 19 pandemic MCO lockdown. Currently there is no more MCO lockdown and AYS should be able to make better profit in its 2^nd half year than its 1^st half year.

Assuming its 2^nd half year performance is the same as its 1^st half year, its annual profit EPS will be 30 sen per share.

Based on PE 3, AYS should be 90 sen.

Based on PE 4, AYS should be Rm 1.20.

Based on PE 5, AYS should be Rm 1.50.

Currently Covid 19 is under-controlled in Malaysia.

As shown on the chart above, 25 Aug Malaysia had 22,642 new Covid 19 cases and currently the 7-day average is less than 4,000 due to our rapid vaccination rate as shown on the chart below. About 80% of our population are fully vaccinated with 2 doses.      

Based on the above factors, AYS should report better profit for the quarter ending December which should be announced before the end of February.