Please be reminded that this is NOT a ”pump and dump” motivated article nor a recommendation. It is just my comprehensive studies on this interesting company. Please seek advice from licensed investment representative for the recommendation!
* The updates in this article are in yellow highlights!
Please refer to the previous articles on MINETECH for a better understanding on the flow of my comprehensive studies:
https://klse.i3investor.com/m/blog/fatprofitstock/2020-04-16-story-h1506012667-THIS_STOCK_COULD_SKYROCKET_TOMORROW_AFTER_BREAKING_ABOVE_IMPORTANT_LEVE.jsp
• The correction in Minetech has been carried out this week and is expected to end soon. Those who expects to buy back below 24-23.5sen may regret of waiting to buy lower!
• And link below is my open letter to KYY on Minetech. Who knows he may also be interested and could start to accumulate this stock at current level of price because does not want to miss the opportunity to recover his wealth!
https://klse.i3investor.com/blogs/fatprofitstock/2020-04-15-story-h1505984825-KYY_YOU_CAN_GAIN_BACK_YOUR_WEALTH_FROM_THIS_STOCK_NOT_TOO_LATE.jsp
• Yes, on the daily chart you might see a potential downward crossover of MACD line and narrowing MACD histogram to zero line. BUT in technical analysis, we cannot assume a crossover or breakout until it does as we need a confirmation for a valid signal. Therefore, the bullish remains intact as long as both MACD line and histogram are still above zero line.
• So, why the stock remains bullish?
(1) This is because the share price has reached the bottom of short-term correction and the hourly chart (1-hour) has also shown a positive divergence. While the share price has made a lower low of late, the money flow index indicator (MFI) has seen an increase and MACD histogram has made a higher low towards zero line. This indicates the operator has started accumulating this stock again, particularly at cost of 25sen yesterday with huge volume and narrowing MACD histogram signals a potential reversal in the share price. We use the hourly chart to catch trend reversal!
Although it closed lower yesterday at 24.5sen, the selling volume at this price was small. The operator intentionally made it close at 24.5sen yesterday so that the correction in chart can be completed soon! In fact, yesterday's volume was also lower than previous day or the lowest this week and since 9th April! That is why I said the correction will be likely to end soon as the selling volume has been in a downtrend!
Another point is the share price has already corrected at Fibonacci retracement of almost 50%! This is the reason the share price is due for a bullish reversal soon!
Meanwhile, the weekly MFI is still steady in an uptrend and has not seen any downturn despite the correction in the daily chart. This means the outflow of money from the stock is very minimal while money inflow in the stock is still strong! Therefore, this should justify the stock could see a potential bullish reversal!
(2) As mentioned many times before, Minetech is expected secure more contracts since the changes in boardroom and the appointment of co-founder of Serba Dinamik, Dato' Awang Daud as a Chairman of Minetech.
And as expected (which means my comprehensive studies did not bluff and it is happening now) Minetech has secured a project to undertake civil works related to pipeline laying project in Hulu Grik, Perak after receiving the LOI for the appointment of Minetech as a contractor this week. Basically, the contract is already in the bag! Although in the announcement mentioned terms and conditions may be finalised within 6 months time, it could be shorter than that to finalise the value. Evidently, Minetech has secured a project just after 3 weeks of the appointment of him as a Chairman and it mentioned the project to contribute positively to earnings in FY21 (from April 2020 to March 21).
This one in the bag and is one of many! The abovementioned project is the one that the other projects I have expected besides potential contacts from maybe Kpower, SCIB and Serba Dinamik due to its common shareholder! My own comprehensive studies! And I am expecting RM1 billion orderbook target in FY21 similar to the modus operandi of Kpower and SCIB.
Minetech, Kpower, SCIB and Serba Dinamik are in different planet! Remember, just a few weeks ago, Kpower, SCIB and Serba Dinamik managed to secure a big contract win despite the MCO and during this Covid-19 crisis. And now Minetech has also secured LOI and more potential contracts soon! Ignore the noise of slowdown in project awards or whatsoever.
Although I did highlight the share price rally of Minetech could replicate Kpower and SCIB in terms of modus operandi, for apple to apple comparison for the spike rally in share price, Kejuruteraan Asastera Bhd (KAB) is an ideal candidate due to similar (1) more additional shares acquired by the boss (in KAB case, Faith Chow Poh Ten), (2) a rally before the contract announcement (in KAB case - Dec 2019 and Jan 2020), (3) share issued of 900 million and (4) the share price base from 20sen. Therefore, the rally in MINETECH could mimic the rally in KAB. The share price of KAB skyrocketed from 20sen to RM1 in two months between Dec 2019 and Feb 2020!
Again, that is why Dato' Awang Daud has been aggressively accumulating Minetech at high PE ratio based on historical earnings! He may plan to transform this company's earnings prospects and to justify the potential rally in Minetech!
For now, to be conservative, based on my comprehensive studies, the potential reversal in its share price soon from current correction will lead to the rally to my first target price assumption of 33sen and my second target prices of 43-54sen! And maybe RM1 by end of this year! Please refer to my previous articles to see how I derive my target prices!
Current price of Minetech: 24.5sen!
Besides my comprehensive studies on Minetech, I have also done studies on two more companies, which saw the price rally after I posted them!
SYMLIFE - https://klse.i3investor.com/blogs/fatprofitstock/2020-04-21-story-h1506050016-MY_NEXT_STOCK_AFTER_MY_FAMOUS_MINETECH.jsp
OMESTI - https://klse.i3investor.com/blogs/fatprofitstock/2020-04-24-story-h1506106906-MY_PROVEN_WINNING_STOCKS_AND_MY_NEXT_STOCK_IS.jsp
https://klse.i3investor.com/blogs/fatprofitstock/2020-04-25-story-h1506132918-FORGET_GLOVE_RELATED_PLAY_THIS_STOCK_CAN_RALLY_A_SPIKE_EVEN_MORE.jsp
