Very Impressive Quarterly by SCOPE

Once there’s a Legend, who taught the Malaysian Investing Scene his Golden Rules to Investing. And one of the Rule is that The Quarter result of this quarter is better than the last Quarter, and the Last quarter must be better than the previous Quarter. In other words, Two consecutive Improvement in the Quarterly Results. This is what we vaguely remembered...

Well, SCOPE (0028) fits this “GOLDEN RULE”. SCOPE (0028) have been reporting two consecutive improvement of their quarterly report as follows:
 

From making a losses to profiting EPS of 0.15 and 0.24. What a turn around story. This increase of profit is due to the business of SCOPE improving.

SCOPE(0028) manufactures Printed Circuit Boards (PCB) and since there is a shortage of supply for PCBs, the selling price of PCB has gone up which improved SCOPE(0028) Bottom Line.
 

Profit from the Manufacturing Division recorded a whooping rise of 256.3% due to increased demand & higher volume sold of SCOPE(0028) products
 

Profit from Plantation Division recorded an increase of 13% which is reflective of higher FFB prices as Palm Oil Prices Hiked.

As for SCOPE(0028)’s prospects, they are backed by solid financial position & expects the financial performance to increase. Even Managements are bullish on SCOPE(0028) !

Technical Analysis

SCOPE(0028) broke to record high, however due to market conditions and knee jerk effect, SCOPE(0028) traded lower however well above is support. A good uptrend stock would not break its support. SCOPE(0028) is currently on a bull run. SCOPE(0028) has great potential upside as the volume traded area above is very small hence has little or less resistance. The next Psychological resistance is at RM0.40 and with support of RM0.315, the Reward to Risk ratio is about 5 times.


Conclusion:

We strongly believe that SCOPE(0028) is a good counter to invest in backed by (i) increasing prices of PCB (ii) higher FFB prices (iii) very strong technicals. SCOPE(0028) has great potential upside and with minimal downside.

What will you do ?

DISCLAIMER: This post serves as an educational analysis and is never meant to be a buy/sell call or recommendation. Investors must always do their own due diligence before making any investment decisions. The author of this post is not liable in any way for any decisions made by any individual.