EVERSENDAI Corp Bhd (Sendai) shares rallied from an all-time low of 48.5 sen on Jan 12 to a high of 83.5 sen on March 17 amid fresh bargain hunting interest.
In the wake of an apparent profit-taking activity, prices slipped into correction mode, trading sideways with a mild downward bias.
The consolidation process lasted almost three months before another fresh bout of buying emerged to help pushed Sendai higher, which saw the shares hitting an eight-month high of 86 sen during intra-day session.
Based on the daily chart, Sendai has penetrated the two-year-old bearish descending line of 76.5 sen in mid-week, as well as the recent highs of 83.5 sen during intra-day session yesterday.
The positive breakout suggests that the fate of this counter has changed for the better.
Another successful penetration of the pretty stiff resistance of 87.5 sen over the next few days would further raise our optimism about the trend ahead.
Greater resistance is resting at the RM1 mark, followed by the RM1.15 barrier but we reckon that Sendai may take this opportunity to fill the minor gap at the RM1.26-RM1.29 band.
Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were advancing. It had triggered a short-term buy at the mid-range on Wednesday. Also, the daily moving average convergence/divergence histogram continued to expand upward against the daily signal line to keep the bullish note. A buy call was issued on June 1.
The past week saw the 14-day relative strength index touching a high of 84 yesterday, up from the mid-range on Monday.
Technically, most of the indicators still are painting an encouraging pictogram, implying Sendai shares are likely to attract follow-through buying interest, thus leading prices higher,
Initial support is envisaged at the 80-sen mark, followed by the 76.5-sen floor.
The lower support of 70-sen mark will now act as the base for the next upward leg. – By K.M. Lee
HLIB Research maintains Buy on Eversendai, ups target to RM1.55
By theedgemarkets.com / theedgemarkets.com | June 15, 2015 : 8:36 AM MYT Share on facebook Share on twitter KUALA LUMPUR (June 15): Hong Leong IB Research has maintained its “Buy” rating on Eversendai Corporation Bhd ( Financial Dashboard) at 85.5 sen with a higher target price of RM1.55 (from RM1.06) and said problems with variation oders, high startup costs and associate losses were now history.
In a note today, the research house said Eversendai’s orderbook of RM2 billion was at an all-time high, implying to 2x cover ratio (highest level achieved).
“New job wins targeted to surpass its previous high of RM1.7 billion (YTD: RM864m).
“Beneficiary of a strong USD as 76% of its orderbook is in the Middle East whose local currencies are pegged to.
“Maintain Buy with higher target price of RM1.55 (+82% upside).
“Eversendai offers investors earnings recovery (CAGR: 45%), surging job wins and exposure to the USD play,” it said.
FYI - Sendai hit a high of RM0.885 before retracing and close at RM 0.875. If market remain sideways or marginally positive, there is no problem hitting R M0.89 and above.
two days consecutively hit highest 0.89 but failed to get over it, At the same time the volume is reducing very much consecutively, watch out for correction is near, next week may have T3 , T4 profit taking + force selling.
Problematic 3” have left. Earnings delivery has been questionable in the past 2 years, being plagued by variation orders (VOs), high O&G start-up costs and associate losses. This is now history with VO related jobs completed, O&G jobs contributing and Technics no longer an associate. As a result, earnings in the last 2 quarters rebounded strongly.
Turun sebab sentimen pasaran, dan clearkan contra player. dengan tambahan kontrak sebanyak rm250 juta, menjadikan jumlah kontrak berjaya diperoleh memcecah 1 billion. Setengah tahun kedua, perlu tumpu lagi RM 700 juta kontrak, jika berjaya mencapai sasaran. Tidak mustahil harga saham boleh mencapai RM 2.00. Hujung tahun ini, semoga profit margin semakin baik.
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....
bluesky908
116 posts
Posted by bluesky908 > 2015-06-12 09:59 | Report Abuse
Same with Sanatan. I also want ask this question