Hibiscus Petroleum has consolidated for too long now and has bottomed out in the market. Therefore, I regard this counter as highly undervalued

Why should you buy hibiscus? Lets take a look on the technical side.

The 20 MA is breached TWICE recently and is showing little signs of resistance.
Should the 1.62 barrier be broken, a short term Target price of RM 2 (+29%) is highly possible.
A strong support of at the 1.50 line is close to unbreakable.

                                                               source : tradesignum.com

Now lets look at the fundamental side of this counter.

1) Expect earnings in the 2nd half of 2014 to double or triple as the management targets its first ever cash flow for Hibiscus.

2) Hibiscus is going to drill many oil wells in Q1 year 2015 which could spur tons of speculation for findings of oil. Speculation alone is enough to double the price of this counter. Why bother buying only then?

3) I predict and expect a proposed bonus issue/new warrants which will highly reward shareholders of this company in the comming weeks.

Therefore, I conclude that this company has so much more to offer and investors HAS NOT seen the true potential of this counter yet.

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DISCLAIMER:  All data and information provided on this article is for informational purposes only. I make no representations as to accuracy, completeness, or validity of any information on this articke and will not be held liable for any losses in relation to this article.