SMTRACK - THIS STOCK SEEMS "ON TRACK" TO MAKE A HOME RUN !!!
Hello to all readers out there. In the
recent week, NASDAQ index had made a healthy correction, indicating
opportunities of buying in TECHNOLOGY sector.
Having said the above, the stock which I'd like to talk about today is SMTRACK BERHAD (SMTRACK - Stock Code 0169, ACE Market, TECHNOLOGY)
BASIC INFORMATION ABOUT SMTRACK
SMTRACK was incorporated in Jan 2004, and listed in BSKL on June 2008, with core businesses in a few fields:
i) RFID solutions for various applications
ii) Logistics provider
iii) Vessel fuel intelligent tracking system
Market Capitalization : RM 72.35 million
Shares Float : 229.7 million
Website : http://www.smtrackberhad.my/
1. CHARISMATIC EXECUTIVE DIRECTOR WHO ALSO SITS ON 3
DIFFERENT BOARDS OF PUBLIC LISTED COMPANIES
Below is the profile of SMTRACK Executive Director, Datuk Tan Choon Hwa :
Datuk
Tan Choon Hwa (JP, JMK) is a businessman with (22) years of experiences
in various industries such as Timber, Mining, Hotel Resort, Housing,
Land Development and Finance Investment Holding.
He
is the Executive Chairman of TCH Resources Group. He holds
Directorships in Wazlian Group, he also holds other chairmanship in
several association included President Malaysia-China Chamber of
Commerce (Kelantan Branch) and Centre Committee etc. He is the advisor
to Asean China Chamber of Commerce and adviser to China Sino Great Wall
Group (listed on China Shenzheng Main Market).
He is presently sit on the board of directors of Ni Hsin Resources Berhad, APFT Berhad and MGB Berhad.
Based
on his vast experience in multiple industries, I believe he will be
playing a significant role in enhancing shareholders value for SMTRACK.
As of the latest announcements in BURSA, he holds a 17.8 million stake
in SMTRACK (7.7%).
2. ENTRY OF NEW MAJOR SHAREHOLDER (10.2% STAKE) - LIM
SHIOU GHAY (CURRENTLY CHAIRMAN OF ACME BERHAD) - ADDED
VALUE TO SHAREHOLDERS
Refer below notice of entry of
substantial shareholder on 11 August 2020 where the price of the stock
had surged to 58c year high. Mr Lim Shiou Gay, who is currently Director
of ACME Berhad (Stock Code 7131, Main Market, Property Sector), had
bought a substantial stake of 23.4 million shares (10.2%) in SMTRACK.
Since he entered SMTRACK thru Private
Placement, therefore under normal circumstances, this would signal him
as a friendly party to the existing management. Therefore, it would be
interesting to find out in the near future, what SMTRACK has planned to
improve and expand its business with the addition of this new major
shareholder.
Brief profile of Mr Lim Shiou Ghay (taken from ACME Berhad Annual Report):
3. TECHNICAL ANALYSIS - BUY IN SUPPORT ZONE, PENDING BREAKOUT OF
FLAG PATTERN TOWARDS R1 AND R2
Refer below the basic price and volume chart with key EMAs for SMTRACK daily chart :
A few observations on the daily chart:
i. Refer Circle 1, 2 & 3, it seems
that there is very strong support at the region between 28-32 cents,
therefore defining this area as a SUPPORT buying zone
ii. Overall SMTRACK is forming a
bullish flag consolidation pattern, at which point is pending to
breakout towards the R1 zone (40 - 42 cents) and further towards R2 (56 -
57 cents) before making new all time highs
iii. Refer Circle 4, 5 & 6, it seems that buying volumes in this stock are far greater compared to its selling volumes
CONCLUSION
Considering all the above, I opine that current price for SMTRACK is attractive due to below:
i) Charismatic Director Datuk Tan Choon Hwa who also sits on 3 different public listed companies
ii) Entry of major shareholder Mr Lim
Shiou Ghay (10.2% stake) who is currently Chairman of ACME Berhad
(Listed Property Stock), value added to SMTRACK shareholders
iii) Chart showing a consolidation within the bull flag pattern, pending a breakout above resistance towards R1 and R2 (Recent High & also 52-WEEK HIGH)
LET’S SEE HOW THE SHARE PRICE MOVEMENT IN THE NEAR FUTURE FORBEARING ANY GOOD CORPORATE NEWS.
Disclaimer
: The above opinion is never intended to be a BUY CALL whatsoever. I am
sharing my observations ONLY based on fundamental; past history;
current trading pattern; charts etc. Please make your own informed
decision before buying this share or whatever share for that matter.
BURSAMASTER
https://klse.i3investor.com/blogs/Bursa_Master/2020-09-05-story-h1513345125-SMTRACK_THIS_STOCK_SEEMS_ON_TRACK_TO_MAKE_A_HOME_RUN.jsp
