In April, I posted about the bullish breakout for GDEX (go here). Shortly GDEX announced that its Executive Director, Wong Eng Su had resigned from the company. From then on, the stock began its steady decline from a high of RM1.84 to the current price of just under RM1.30. GDEX has a rebound in the morning session after coming close to the horizontal line at RM1.20.
Chart 1: GDEX's daily chart as at Jun 16, 2015_10.30am (Source: ShareInvestor.com)
Chart 2: GDEX's monthly chart as at Jun 16, 2015_10.30am (Source: ShareInvestor.com)
Recent Financial Results
From the table & diagram below, we can see that GDEX's financial performance is satisfactory.
Table 1: GDEX's last 8 quarterly results
Diagram 1: GDEX's last 25 quarterly results
Valuation
GDEX (closed at RM1.27 at the end of the morning session) commands a PE of 59 times (based on last 4 quarters' EPS of 2.15 sen). At this PE, GDEX is very expensive.
Conclusion
Despite the good financial performance, GDEX is hard to recommend as an investment as it is an expensive stock. It may find a support at RM1.20 and trades sideways for now.. Any strong rebound to the RM1.50 mark should be used as an opportunity to exit the stock for those who are holding it.
Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, GDEX.
GDEX (0078) - GDEX: An expensive stock had a fall!
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