here's the full article: Stock to Watch - FITTERS & FITTERS-WB (Possible Trend Reversal)
FITTERS forming higher low and resisted by short term downtrend trendline. Buying interest can be seen recently and breakout from trendlline may rally towards 0.855 and you might see FITTERS-WB at 0.32. Positive reading from MACD and stochastic indicating that possible trend reversal in near future and we reckon the share price may rally towards the previous resistance RM1 in midterm if able to breakout RM0.855 with high volume.
Fundamental (From my friend) Fitters's current business segment: 1. Fire services 2. Property development & construction 3. Renewable & waste -to-energy
Other than sustainable income from current properties development in the next few years, Main catalyst for Fitters' shares price will be its future major revenue generator: PVC-O pipes manufacturing. This segment will contribute positive earnings to Fitters starting 2015. Its 3 production lines, which will be ready by end 204, will be able to produce 11,000 tonnes or 3700 km of pipes worth RM150million with another 3 production lines planned for 2015.
Existing market for pipes replacement is huge, with more than RM11billion worth of pipes due for replacement locally.
Fitters' outlook for its pipes manufacturing is bright, as PVC-O pipes are higher impact resistence and has a longer lifespan of 50 years compare to conventional steel based pipes.
Besides, Fitters has announced its plan to list its renewable energy unit, Future NGR Sdn bhd, in Singapore and is seeking to raise between $20-25mil from the IPO. Future NGR has formed JV partnership with AHT Services GMBH, a German biomass and coal gasification expert, to bring over biomass gasification technology to SEA region.
With all the earnings catalyst for the near future, further shareholder's value will be unlocked. Fitters' potential is not justified by its low PE of 8.5 times.
Let's Watch Closely!
Any investment decisions carried out based on information, analysis, or commentary provided here is solely your responsibility. You should consult your investment advisor before making any investment decisions.
Profit before tax decrease 23.4% mainly due to completion of ZetaPark. But the new ZetaSkye has only started this year and at 21% completion. we should be expecting better return by next quarters. Also the PVC-O earnings that will follow through in 2015.
Anyway, the share price will sure continue to drop in near term. Will definitely comeback when the valuation became more attractive.
mixed feeling of the report. Revenue decreased. net asset/share increased from 99.91 to 104.47, cash end of the period decreased as the "purchase of properties, plant & equipment" increased also. current ratio increased from 2.21 to 2.41.
Maybe you want to think again. KLCI is in double top mode, death cross. and when was the last time you see 38 points drop in 2 and a half hours? This is only a beginning.
On Technical. Fitters already break Oct 16 low. Just like KLCI does. It is a time to be cautious. On Fundamental, there is potential to go lower since Pipe replacement business is closely link to Gomen budget. My two cents.
Today KLCI rebound on technical, high chances a trap. Because there is no solid fundamental improvement on Malaysia economy. Mostly bad news. and what Zeti talk about "oil price still sustainable" is only to sprinkle water on fire. The damage is already there, Petronas already decided to cut Capex, O&G company already started retrench process. SKpetro too cut Capex. nothing is good really. Saudi expect oil to stable around 60. means they wont take any production cut measure until oil price breach below 60. and current oil prices still proven sustainable for Shale producer. means current capacity still potentially oversupply. Ringgit can be extremely vulnerable against the dollar due to ended QE and potential interest rate hike in the US. Carry trade has some very bad reputation and is closely link to 1997 crisis. Becareful. if you exited your position, you dont want to get burnt amid this negative market. I like Fitters, but now is simply not the time to invest in KLSE.
no matters how many of us acting like we are experts know alot of the oil price, this crap and that crap, in fact none of us here actually know what will happen eventually, buy/sell on your own risk
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....
tjhldg
27,218 posts
Posted by tjhldg > 2014-11-25 21:05 | Report Abuse
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