KUALA LUMPUR (Jan 23): Tiong Nam Logistics Bhd ( Financial Dashboard) gained as much as seven sen or 5.3%, possibly on cheaper crude oil, which translates into lower fuel cost for the firm.
Tiong Nam (fundamental: 1.3; valuation: 1.8) climbed to its intraday high of RM1.39 before paring gains. At 12.30pm, the stock settled at RM1.37 with some five million shares changing hands.
Analysts have noted Tiong Nam's share gains this week. "Tiong Nam’s share price have been on the uptrend since the beginning of the week, with the stock rising 13.7% since Monday while volume increased over ten-folds
"Just yesterday, the stock rose 3.13% to close at RM1.32, possibly encouraged by the slump in oil prices, which translates into lower fuel costs for logistics players," The Edge Research wrote in a report.
Edge Research's report is available in The Edge Financial Daily and theedgemarkets.com today. Tiong Nam is featured as a stock with momentum based on algorithm.
Tiong Nam's property unit is also being closely watched. Edge Research said Tiong Nam enjoyed steady property development earnings.
"Tiong Nam has enjoyed steadily rising turnover from FY March 2010 to FY2013, with sterling performance in FY2014 when its revenue leapt 56.8% to RM 533 million, driven largely by the property development segment which grew six times from RM152 million to RM178 million.
"Property has since surpassed its core logistics business to be the largest operating segment," Edge Research said.
Edge Research, however, warned that the recent high contribution from property might create earnings sustainability issues in Tiong Nam during a property down-cycle.
Tiong Nam's valuation is also worth noting. Edge Research said Tiong Nam was traded at a trailing 12-month price-earnings ratio (PER) of seven times.
Bloomberg data showed the sector average PER is about 121 times, derived from valuations of logistics and real estate firms.
ray81, from the price action over the last week, a lot of sellers close to 1.40. this is very likely due to the previous batch of buyers looking to exit. may take a while to clear 1.40 but i'm of the opinion accumulation at this level is ideal. my personal TP is significantly above this level. if the price can keep at current levels for a week or so more, then the next move above 1.40 should take place before CNY.
from now til end may will be crucial, in terms of the results announcement. 1Q n 2Q not so good, i'm hopeful 3Q n 4Q will pick up and send the stock much higher!!!
the way i see it share will go up further till cny atleast, insider share buy back is 9 cases in dec and 2 cases in jan 15. surely insider knows well of the result and starts to collect, only to be disturbed by those selling who have been trapped last yr at 1.32 to 1.36. once these are cleared, the engine will shoot up again.hohoho...
algorithm means exponential growth, not the normal linear one which is slow in normal standard. for example, its growing from 2 to 4, 8, 16, 32...64....128 like the way it grows for chips.... linear growth is like from 1,2,3,4,5.......sampai tua lah....
well, for the time being....most seller also gone....support will slowing come in the by mid of Feb... waiting for some positive result. Management have buy in earlier, and i think everything will be up slowly by next month...finger cross...any world bad news and etc for example oil drop to 20 or etc....although TNLOGIS will benefit from price oil drop, but the whole KLSE negative sentiments will bring the share down.......so hopefully TNLOGIS up to at least to 1.4
i believe it should be better than the first 2 quarters, which were disappointing. 3Q results will give us an indication of how the full year will be. to break the previous high of 1.48, the company must deliver min 15 - 20% growth in net profit.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
ray81
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Posted by ray81 > 2015-01-23 16:45 | Report Abuse
good job....all taken profit...leftover for me....