Hi to all fellow investors and traders !
Today I would like to highlight a stock which has been underlooked by
many, as the price remains low and in accumulation mode. That stock is SMRT HOLDINGS BERHAD or SMRT (Code 0117, ACE, Technology).
SMRT (BSKL Code 0117)
Personal TP Short To Mid Term : 20c, Long Term : 30c
Here are my thoughts :
1. Major Shareholding Changes Recently - A Possible Takeover Situation ??
a. Addition by Director - TAN SRI DATO' DR PALANIAPPAN A/L RAMANATHAN CHETTIAR
Refer below screenshot of his latest shareholdings in SMRT. The above
director had been accumulating shares since last year 2018 until
recently in March 2019. His total shareholding now is brought up to
130.8 million shares (32.149%) which is considered rather significant
and indicating plans to make major moves in this company.
b. Addition by Substantial Shareholder - Dato' Abd Aziz Bin Sheikh Fadzir
Refer screenshot below. Dato' Abd Aziz Bin Sheikh Fadzir is not one of
the company directors. But recently, his total shareholdings stood at
78.3 million shares (19.241%).
Combined with above director, these 2 individuals already hold about 51.3% of the company. We should be on the look out for further shareholding movements in anticipation of a major event.
2. Financial Analysis - Undervalued As Now Trading about 2 X Forward PE
Refer below latest Quarter Report released by company on 1 March 2019.
I would like to highlight the result of latest March 2019 quarter
report, which the company had reported earnings per share (EPS) of 1.36
cents. Should this earning be consistent through out the whole year,
full year forward EPS should be at 5.44 cents. With the current price os
11.5 cents, this means that it is currently trading at a mere 2.11 X
Forward PE.
The company also has strong assets with NTA at 43.6 cents.
As commented in the QR, this improvement is primarily attributable the
inclusion of revenue from Asia Metropolitan University, Asia
Metropolitan Colleges and Asia Metropolitan International School
following the consolidation of Minda Global financial results from 1
February 2018.
Also refer below prospects of company taken from QR. Basically, the
Group's outlook for the year remains positive despite challenging
business conditions and competitive landscape. The Group's strategy
remains unchanged and continues to focus on human resource development
and technology.
3. Technical Analysis - A Good Entry in Accumulation Stage
Refer below monthly chart of SMRT. As you can see, the current downside
on this stock is very low as it had peaked at 93 cts in Nov 2014 and
has been on downtrend since then.
The recent low was 9.5 cts in December 2018, which was when the market
sentiment was very negative and most stocks had touched lows.
With the diminishing volumes being transacted at current prices and
with the company financials turning around, I foresee that accumulation
period will be ending soon and the stock shall start to uptrend towards
first resistance of 20 cts and second resistance of 30 cts.
Therefore current entry, is considered a low downside, but high upside potential returns.
CONCLUSION
Based on my opinion, SMRT should be soon be going on uptrend mode, based on below:
a. Shareholding Changes - More Acqusitions by Director and Substantial Shareholders
b. Financial Analysis - Latest QR results had turnaround from loss to profit
c. Technical Analysis - Low Downside, High Upside Potential towards R1 20 cts , R2 30 cts
Thanks for reading and see you in the next post.
Yours Truly,
INVESTHOR
https://klse.i3investor.com/blogs/InvesthorsHammer/204116.jsp
