Dear all reader, trader and investor,
I would want to share a very potential
company in 2019, because technically, it is now very low, and the
earning prospect is good. As in order to profit from investing in share
market, it is about buying low selling high.
Now MIECO is at the very low price. At the price of 30 cents now with solid business around the world, and NTA of RM 0.72 a share, this share should have what it takes to move forward in 2019.
Firstly, very good technical position and outlook.
This is MIECO 1 year chart. 1 year ago,
it is trading at 70 cents region. Now the share price had come to a
region where it will see a technical break out from the long term down
trend line.
There is very high chance that MIECO will break up from this resistant and form a upswing.
The good entry price can be timed at RM 0.31 to RM 0.32 which is right on the break out point.
The bollinger band of MIECO also pointing to a bollinger break out from a bollinger squeeze.
Technically, MIECO is very attractive
As long as the company is having a good
business, everything is a cycle. Just like commodity, property,
construction and oil and gas industry. The timber / chipboard industry
should be heading for an upward run now because the bad season is over.
Second reason - Major natural disaster in 2018 will provide additional demand
As you can see, there are a lot of costly
and deadly natural disaster happening in 2018, all of them nearing the
end of 2018. From Japan, Taiwan, Hong Kong and until USA, these natural
disaster cost USD 160 billion alone in 2018. If you think it another
manner, that would be USD 160 billion of opportunity splashed out in
rebuilding effort, which can benefit sector like timber industry where
furniture is to be replaced, and houses to be rebuild.
Thirdly, a bonus from Malaysia government - Foreign worker levy to be lowered starting March 2019
KUALA LUMPUR:
The government has agreed to temporarily lower the extension levy fees
for foreign workers in five sectors for a one-year period effective
March 1.
Finance Minister
Lim Guan Eng said the reduction in levy fees between RM1,500 and
RM4,000 involved the manufacturing, services (for restaurants and
cleaning), construction, agriculture and plantation sectors.
Announcing the
levy reduction in a statement, he said the Cabinet made the decision
during a meeting on Feb 20 to lessen the burden of employers.
The new levy
will start from March 1, 2019 to Feb 29, 2020. For the manufacturing
sector it will be RM6,000, services (RM6,000), construction (RM6,000),
agriculture (RM2,000) and plantation (RM2,000).
That is 40% reduction for manufacturing sector (Previously is RM 10k), which is a lot of saving for a labor intensive company.
Conclusion summary on MIECO
1. Technical outlook very good - Break out from long term resistant and bollinger breakout
2. 2018 natural disaster cost USD 160 billion, good demand to timber for rebuilding
3. Foreign worker levy in manufacturing lowered by 40% (RM 10k to RM 6k), huge cost saving to employer
So, if you are a smart trader, this
could be your good chance to think MIECO now. Price low, potential high,
prospect good. Company not yet kena goreng, open market shares got good
liquidity. So let's open the wok and goreng goreng season.
https://klse.i3investor.com/blogs/targetinvest/195028.jsp
https://klse.i3investor.com/blogs/targetinvest/195028.jsp
