TCB FB Group

We wish to inform that we have recently launched our FB Group and we would welcome all into the Group at  https://www.facebook.com/groups/techcodebreaker/. 

We have done an update on Penta in there besides posting other stock related information in there.

PENTA

Periodically,  TCB will pick a stock we may like to trade short term.  So, this week, TCB have selected the stock, PENTA as our *Stock In Focus (SIF)*.  Please do not take this as a buy signal as our TA reading for these stocks are for sharing purpose only.  Do calculate your own risk/reward ratio if you decided to trade this counter.

Background Information

Pentamaster Corporation Berhad, is a Malaysia-based investment holding company listed on the Main Board of the Bursa Malaysia Securities Berhad. Through its subsidiaries, the Company's operations include designing and installation of automation systems and contract manufacturing; manufacturing of automated and semi-automated machinery and equipment; designing and manufacturing of precision machinery components; development and implementation of information technology system, and designing and manufacturing of automated testing equipment and test and measurement system. It caters to industries ranging from semiconductor, computer, automotive, pharmaceutical, medical devices, electrical and electronics, food and beverage and consumer products to general manufacturing. It’s worldwide customers comes from companies in Malaysia, the People’s Republic of China, the United States, the Philippines, Taiwan, Singapore, South Korea and many others. 

Technical Analysis

-- Penta Weekly Chart --

Penta is trending a bullish phase. As with all stocks, it underwent corrections along its way which is a normal process, taking breathers, so to speak. The resulting bearish sentiment bearing on the stock from its shooting star in the week of 24/4 brought its price down to 0.575, testing its strong support at 0.605. This support held up very well when it closed at 0.605 and 0.60 during the weeks of 1/5 an 8/5 respectively. A break in its resilient resistance at 0.685 will confirm the resumption of its bullish trend. For mid-term traders, you may want to stop loss should 0.605 be violated. 

-- Penta Daily Chart --

On the daily chart, the white marubozu of 29/4 sent a strong potential reversal signal.  Together with its subsequent trading patterns that revealed a strong implication of sellers' exhaustion, it is poised to trend higher with a high probability of taking it into new price territories.  Immediate support rest at 0.63 backed up by its strong support at 0.605.  A break in its resistance of 0.685 bodes well for it to test its resistance at 0.745.  A breakthrough of 0.745 will send Penta to its target prices of 0.82, 0.91 and 0.96 respectively.  Its strong financial performances registered recently will be the key catalyst for it to bring its target prices to fruition. For short term traders, you will want to stop loss should 0.63 be violated.

Key Notes

1.  On 24^th Apr 2015, the company announced its 1^st quarter 2015 results that reflected revenue improving by a whopping 98.3% over the same period last year. As a result of this improved revenue,  the company achieved a 1^st quarter profit of RM 1.75 mil versus a  loss position of RM 1.08 mil last year. The company was already showing signs of improved revenues and profitability when they reported revenues of RM 81.05 mil (LY RM 67.34 mil) and profits of RM 4.65 mil (LY  RM 2.39 mil) for their last financial year 2014 recently.

Source:http://www.bursamalaysia.com/market/listed-companies/company-announcements/4717501 

HEXZA

Periodically,  TCB will pick a stock we may like to trade short term.  So, this week, TCB have selected the stock, HEXZA as our *Stock In Focus (SIF)*.  Please do not take this as a buy signal as our TA reading for these stocks are for sharing purpose only.  Do calculate your own risk/reward ratio if you decided to trade this counter. 

Background Information

The Group's principal activities are the manufacture and sale of ethyl alcohol, liquefied carbon dioxide, kaoliang wine, adhesive resins, formaldehyde based resin and glues. Other activities include property development, general trading and marketing and distribution of consumer products and investment holding. Operations are predominantly carried out in Malaysia. Its subsidiaries include Bio-Acetic Products Sdn. Bhd., Chemical Industries (Malaya) Sdn. Bhd., Hexza-Mather Sdn. Bhd., Hexzachem Sarawak Sdn. Bhd. and Norsechem Marketing Sdn. Bhd.

Technical Analysis

Weekly Chart

On the weekly chart, it is in stage 2 of the market cycle which is very bullish. The long term up trend line is still intact since it started its uptrend in August 2013. After hitting a high at $0.83, it is under consolidation between $0.625 and $0.83. The current selling pressure is minimal. It is expected to test the immediate resistance at $0.83 and strong resistance at $0.845. A break above $0.845 will take it into uncharted territory that comes with an estimated target of $1.13. 

Daily Chart

On the daily chart, it is in stage 2 of market cycle which is very bullish. It broke out from the Inverted Head and Shoulders formation which has bullish implications. The immediate targets are $0.90 and $1.00, where $1.00 is the psychological resistance price and the final target for this breakout is estimated to be $1.13. It is expected to test the immediate resistance at $0.83 and $0.845. Any weakness may find $0.815 as its immediate support with strong support at $0.795/$0.80. The formation of a gravestone doji on 1/4 hints at a possible consolidation towards its immediate support but it remains in its overall bullish pattern.  For short term traders, you may want to cut loss if $0.77 is violated. For a medium term trader, you may want to cut loss if $0.70 is violated. 

Note: Analysis was performed on a price adjusted chart.

Key Notes

1.  On 30th January 2015, Hexza entered into a Sale & Purchase and Lease Agreement with Tembusu Industries Pte. Ltd. (“Tembusu”), a company incorporated in Singapore, pursuant to which Hexza shall purchase part of the equipment for a 8MW Heavy Fuel Oil Power Generation System (“Equipment”) in Kauthaung, Myanmar from Tembusu, and Tembusu shall lease back the Equipment from Hexza for a period of 10 years. The purchase consideration of US$ 6.0 mil versus the leaseback rental of US$130,205 represent a payback period of 4.5 years.

2.  On 11th February 2015, Hexza announced its 2nd quarter results ended 31st December 2014 that reflect improved revenue and profits when compared to the preceding period.

SUMMARY OF KEY FINANCIAL INFORMATION 31/12/2014

		INDIVIDUAL PERIOD		CUMULATIVE PERIOD
		CURRENT YEAR QUARTER	PRECEDING YEAR CORRESPONDING QUARTER	CURRENT YEAR TO DATE	PRECEDING YEAR CORRESPONDING PERIOD
		31/12/2014	31/12/2013	31/12/2014	31/12/2013
		$$'000	$$'000	$$'000	$$'000
1	Revenue	37,897	36,285	77,158	67,725
2	Profit/(loss) before tax	5,785	3,408	11,958	4,601
3	Profit/(loss) for the period	4,730	2,731	9,507	3,758
4	Profit/(loss) attributable to ordinary equity holders of the parent	4,266	2,609	8,423	3,629
5	Basic earnings/(loss) per share (Subunit)	2.10	1.30	4.20	1.80
6	Proposed/Declared dividend per share (Subunit)	0.00	0.00	0.00
		AS AT END OF CURRENT QUARTER		AS AT PRECEDING FINANCIAL YEAR END
7	Net assets per share attributable to ordinary equity holders of the parent ($$)	1.0600		1.0800

source : http://www.bursamalaysia.com/market/listed-companies/company-announcements/1874565

SENDAI (EVERSENDAI CORPORATION BHD)

Periodically,  TCB will pick a stock we may like to trade short term.  So, this week, TCB have selected the stock, SENDAI as our *Stock In Focus (SIF)*.  Please do not take this as a buy signal as our TA reading for these stocks are for sharing purpose only.  Do calculate your own risk/reward ratio if you decided to trade this counter. 

Background Information

Eversendai Corporation Berhad, an investment holding company, provides steel fabrication, structural design, shop drawing, and steel erection services. The company is involved in the structural steel design, engineering, supply, and fabrication; structural steel erection services for high rise buildings, shopping malls/ retail centres, stadiums, airports, long span roof structures, industrial, power, and petrochemical plants, as well as factories, warehouses, and bridges; and installation of mechanical equipment, pressure parts, pipes ducts, clads, and control systems for power plants. It also provides procurement, fabrication, and installation of process modules and equipment for oil and gas production; planning, procurement, HSC and execution, and installation of various mechanical works, such as pressure parts, non-pressure parts, piping, heat treatment, equipment, ducting, insulation, electrical, painting, and pre-commissioning works; and undertakes contract specialising in fabrication projects consisting of medium sized turnkey and large EPC projects. In addition, the company is engaged in the provision of management services; civil engineering and general contracting services; and steel fabrication and painting services. It operates in Malaysia, Singapore, Thailand, the Philippines, Indonesia, Hong Kong, Oman, Saudi Arabia, Bahrain, Qatar, India, and the United Arab Emirates. The company was founded in 1982 and is based in Rawang, Malaysia.

Technical Analysis

A potential awakening of a beaten down stock could be an apt description of Sendai's technical chart. It's stock price peaked at 1.74 on 17/7/2003 and then took an ensuing downward journey that took it all the way down to 0.485, a journey that lasted about 20 months. 

Currently, it has all the trappings of a potential classic Double Bottom Reversal, a bullish reversal pattern, as it fulfills the critical criteria associated with it.  For starters, there was a significant downtrend for it to reverse.  Crucially, there were evidence of an accelerating buying pressure and volume off its 2nd trough. To add to it, the peak after the 1st trough was significant which carries the implication of a large potential advance upon successful completion of the Reversal.  Hence, a break above the critical resistance of 0.78 will complete the Double Bottom Reversal and could signal a potential strong bullish run.

Weekly Chart

On the weekly chart, it broke out from its downtrend line during the week of 9/3/2015 with good volume giving ammunition to the validity of its price reversal.  In the mid-term, it has an immediate support at 0.705 with the cushion of a strong support at 0.66.  The resistance at 0.78 is a key resistance that must be taken out convincingly in order to complete the Double Bottom Reversal.  A successful completion of the reversal would yield a target price of 1.07.  A stop loss is recommended upon violation of 0.66 for mid-term traders.

Daily Chart

Based on the daily chart, it hit a high of 0.835 on 17/3/2015 but failed to clear it.  Instead, it closed the session with a dark cloud, a precursor to an ensuing period of consolidation. It is currently consolidating sideways and thus far, is on the verge of overcoming the 0.78 resistance convincingly.  Successfully clearing the dark cloud top of 0.835 will pave the way for it to scale towards its target prices.  It has an immediate support at 0.76 and further support levels can be found at 0.735 and 0.715 respectively.  A successful completion of the Double Bottom Reversal would carry Sendai to its target prices of TP1 = 0.85, TP2 = 0.90, TP3 = 0.99, and TP4 = 1.07. For short term traders, a stop loss is recommended should 0.715 be violated depending on your risk profile.

Key Notes

1.  On 26th Feb 2015, the company announced its unaudited 4th Quarter results of 2014. The Group reported a revenue and profit after tax of RM308.5 million and RM16.4 million respectively for the quarter ended 31 Dec 2014, as compared to the corresponding quarter last year of RM238.3 million and a loss of RM9.3 million. The improved performance of the group is due to the positive contribution from its new Oil & Gas division.

The Group’s revenue continued to be dominated by its operations in the Middle East, which has accounted for 67% of the Group’s revenue during the current financial period. 

(Ref:  http://www.bursamalaysia.com/market/listed-companies/company-announcements/1886933)


2.  Some of the Group's recent announcements include a RM44 mil contract secured in Dubai on 5th Jan 2015, a RM184 mil project in India on 26th Jan 2015, a RM120 mil contract in Malaysia on 9th Feb 2015, a RM269.2 mil project in Qatar on 2 Mar 2015 and two contracts worth RM246 mil in Saudi Arabia on 16 Mar 2015.

EG INDUSTRIES BHD

Periodically,  TCB will pick a stock we may like to trade short term.  So, this week, TCB have selected the stock, EG as our *Stock In Focus (SIF)*.  Please do not take this as a buy signal as our TA reading for these stocks are for sharing purpose only.  Do calculate your own risk/reward ratio if you decided to trade this counter. 

Background Information

EG Industries Berhad ("EG") was first listed on the KLSE in 1993 under the name of Dai-Ichi Industries Berhad. Today, EG as an investment holding company, operates through its subsidiaries that include SMT Technologies Sdn Bhd, which is engaged in the provision of electronic manufacturing services for computer peripherals, telecommunication and consumer electronic/electrical products industries ; Mastimber Industries Sdn Bhd, which is engaged in the manufacture and sale of two layer solid wood parquet flooring ; EG Wireless Sdn Bhd, which is an original equipment manufacturer/original design manufacturer (OEM/ODM) in complete box built products, and SMT Industries Co Ltd, which is engaged in the provision of electronic manufacturing services (EMS) for computer peripherals, telecommunication and consumer electronic/electrical, and automotive industrial products industries. It has operations in Malaysia, Singapore, Europe, the United States, Korea and Thailand.

After the announcement of its last quarter results ended 31^st Dec 2014 on 26^th Feb 2015, EG began to attract attention with trading volume reaching a high of 7.7 mil shares traded on 27^th Feb 2015.

Technical Analysis

EG is currently bullish after hitting a bottom at 0.455 which marked the end of its correction phase.

--Weekly Chart of EG--

The weekly chart's formation of the 3 white soldiers confirms the bullishness of EG. It is expected to break above RM 0.865 decisively with volume which should see it moving towards its 1^st resistance of RM 0.90 and subsequently onward to challenge its strong resistance at RM 0.94. It should enjoy an immediate support at RM 0.78.  A successful take out of the resistance at RM 0.94 will see it trend towards its 1st target price of RM 1.00 before moving towards a final target of RM 1.11.

--Daily Chart of EG--

On the daily chart, after closing the past two days with a doji pattern, it closed with a bullish engulfing pattern on 11/3 reaffirming its bullish trend.  It has been consolidating after attempting to break the high of 0.855 on 5/3.  It tested the RM 0.865 resistance on 11/3 but ended up closing at RM 0.85 mainly due to heavy T4 selling pressures. It is poised to further its uptrend and It is expected to break RM 0.865 anytime soon to move towards its target prices of RM 1.00 and RM 1.11 respectively. Stop-loss if RM 0.775 is violated.

Key notes

EG’s latest quarterly report for financial period ended 31/12/2014 reflected a very much improved financial performance.  (http://www.bursamalaysia.com/market/listed-companies/company-announcements/1886685)

BDB (BINA DARULAMAN BHD)

Periodically,  TCB will pick a stock we may like to trade short term.  So, this week, TCB have selected the stock, BDB as our *Stock In Focus (SIF)*.  Please do not take this as a buy signal as our TA reading for these stocks are for sharing purpose only.  Do calculate your own risk/reward ratio if you decided to trade this counter. 

--Weekly Chart of BDB--

In recent weeks, BDB attracted much interest that resulted in increased trading volume. Currently, it is retesting it's resistance level at 0.96 and should enjoy immediate support at 0.82 and 0.71 respectively. It needs to take out the Gap resistance at 0.96 and 0.995/1.00, where 1.00 is also the psychological resistance price. It's current trading volume is at a good level that primes it for a rounding bottom breakout if it closes above 0.96. The mid-term target prices (TP) are 1.21 and 1.28. Stop-loss if 0.71 is violated. 

--Daily Chart of BDB--

After a drastic fall in late 2014, it hits a bottom at 0.71.  BDB is now ready to enter stage 2 when the gap of 0.96 and 0.995/1.00 is closed. It has a good support level at 0.885/0.88 and also at the next support level of 0.845. Gap resistance is at 0.96 and 0.995/1.00. If the support level at 0.885/0.88 managed to hold, it will close the gap and surge further up north in the near future. TPs are estimated to be 1.10 and 1.14. Stop-loss if 0.845 is violated. 

Key Notes

1.   BDB's latest quarterly report registered an improved financial performance. (Ref: http://www.bursamalaysia.com/market/listed-companies/company-announcements/1885581)

2.   BDB is strengthening its property activities in Kedah via the proposed acquisition of several parcels of land to increase its land bank for property development. (http://www.bursamalaysia.com/market/listed-companies/company-announcements/1862337)

CENSOF HOLDINGS BERHAD

Periodically,  TCB will pick a stock we may like to trade short term.  So, this week, TCB have picked the stock, CENSOF as our "Stock In Focus (SIF)".  Please do not take this as a buy signal as our TA reading for these stocks are for sharing purposes only.  Do calculate your own risk/reward ratio if you decided to trade this counter.

BACKGROUND INFORMATION

Stock Name	CENSOF
Stock Code	5195
Listing	Main Market
Sector	Technology
Industry Classification	Industry Class Industry Group Industry Sub Industry Main Industry Technology Software and IT Services Application Software Solution Providers
Company Activities	The Company is principally engaged in the business of investment holding.
Group Activities	The Censof Group is a financial management and business solutions provider. The Group provides its services to government and commercial sectors. The Group is organised into the following main business segments: a) Financial Management Software Solution - design, development, implementation and marketing of financial management software and related services via its subsidiary, Century Software (Malaysia) Sdn. Bhd. This segment is the main revenue contributor. b) Payment Aggregation Solution - providing services for financial applications, electronic payments and collections solutions via its subsidiary, T-Melmax Sdn. Bhd. c) Wealth Management Solution - providing services for portfolio management, fund accounting, unit registry, selling agent and online transaction via its subsidiary, PT. Praisindo Teknologi. d) Training Solution - providing training services in areas related to information technology via its subsidiary, Knowledgecom Corporation Sdn Bhd. e) Information Communication Technology - supply, delivery, installation, testing, commissioning and maintenance of IT hardware, development, management and provision of Business To Business (B2B) e-commerce and computerised transaction facilitation services, providing of cyber security solutions, managed services, project fulfilment, assets maintenance and contact centres.
Principal Products / Services	a) Financial management software solution and services, including financial management system for corporate, government, distribution and retail sectors; local council system; tender management system and business performance management b) Payment aggregation solution - It provides web-based online banking solutions for all types of bulk payments and collections for Corporations, Universities and small and medium-sized enterprises.  c) Wealth management solution including investment management system and web security & wan optimisation solution d) Training services in areas related to information technology

FINANCIAL SNAPSHOT

Reference - the company’s Annual Reports

TECHNICAL ANALYSIS

There is a saying that "History Always Repeats Itself".  Well, will History Repeats Itself  with Censof? 

Historically, on August 2013, Censof formed a Hammer after being beaten down to a low of RM 0.32. Subsequently, it broke out from its Falling Resistance line and trended all the way up to the then high of  RM 0.63.  This pattern of price movement was detected in Censof lately.  Its current price movement bears similarity to the aforementioned pattern. It formed a Hammer after its price was beaten down to RM 0.29 in Dec, 2014 and it broke out of its Falling Resistance line this week.

--Weekly Chart --

Analyzing it in further detail, on the weekly chart (medium term), Censof is currently in Stage 2 of the market cycle which is very bullish. It has been consolidating for a few weeks in Stage 1 since it hit its all-time low of RM 0.29 after going through Stage 4 when its price free fall from RM 0.625 to RM 0.29. Stage 4 ended with the low of RM 0.29. Since then, during the 2^nd week of January 2015, its price has been trending upward strongly with bullish candles that included the bullish 3 white soldiers pattern. This week it has broken above its strong downtrend resistance line reinforcing its bullishness. It is trending with an upward bias towards its 3 years high of RM 0.67.

So, its interesting to observe to see if history will repeat itself to witness Censof trending back to its previous high of RM 0.67.

--Daily Chart --

On the daily chart (short term), it broke out of its immediate Resistance Line at RM 0.48 on 23/01/2015 with increased volume confirming its Trend Reversal. It is expected to break above RM 0.525 to test its next resistance at RM 0.56.  If broken, it should test its very strong resistance at RM 0.60/ RM 0.625. If Censof overcomes the RM 0.625 resistance, it is expected to test its previous 3 year's high at RM 0.67. Any weakness should find immediate support at RM 0.48/RM 0.47 and further back, at it strong support at RM 0.43. For the short term traders, you may want to stop loss if RM 0.46 is violated. For medium term traders, you may want to stop loss if RM 0.40 is violated.

EVERGREEN

Periodically,  TCB will pick a stock we may like to trade short term.  So, this week, TCB have picked the stock, EVERGREEN to put in *Stock In Focus (SIF)*.  Please do not take this as a buy signal as our TA reading for these stocks are for sharing purposes only.  Do calculate your own risk/reward ratio if you decided to trade this counter.

Background Information

Evergreen is a leading worldwide producer of quality engineered wood-based products consisting of Medium Density Fibreboard (MDF) and Particleboard with an annual production exceeding 1.3 million cubic meters. In response to worldwide market demands, Evergreen adopted a vertical integration strategy and expanded beyond its core Medium Density Fibreboard and Particleboard into value-added downstream products such as Paper, Veneer, Printed, Melamine Board Laminations, Knock Down Furniture, Sawn Rubberwood Timber and moved up stream producing Resin and having their own Rubber Trees Plantation. Evergreen's comprehensive range of upstream and downstream products has set the trend around the world.

Market Value :  RM 371,925,000

Share issued  :  513,000,000

Reference: http://evergreengroup.com.my/en/home

   Technical Analysis

Weekly Chart

Based on the weekly chart, it is in Stage 2 of the market cycle which is very bullish. Evergreen broke out from its Rounding Bottom Formation between RM 0.45 and RM 0.71 after almost 2 and half years which signaled a trend reversal. Not only that, it has also broken out from its long term down trend line. The immediate target is at RM 0.97 with immediate resistance at RM 0.78/RM 0.80.

Daily Chart

On 13 Aug, 2014, it was traded at a volume of 10.9 mil which was its all time high volume for the past 2 and half years. On 9 Jan, 2015, it broke out from the rounding bottom with a volume of 10.9 mil which make the breakout more valid. Any weakness due to the recent sharp rises and overbought situation may find RM 0.68 as support 1 and RM 0.63 as support 2. For a short term trader, you may want to stop loss if RM 0.68 is violated. For medium term trader, you may want to stop loss if RM 0.63 is violated.

Key Notes

1.  After registering losses in preceding quarters, Evergreen recorded profits during the quarter of 30 Sept, 2014, the first profit in many quarters, a promising sign to better performances. Subsequent quarterly results will provide a better indication of its future performances. (Ref: http://www.bursamalaysia.com/market/listed-companies/company-announcements/1802053)

2. There is an ongoing litigation case involving its subsidiary which the company opined they have a strong case to defend. (Ref: http://www.bursamalaysia.com/market/listed-companies/company-announcements/1605385)