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.
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.
Source:http://www.bursamalaysia.com/market/listed-companies/company-announcements/4717501
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 24th
Apr 2015, the company announced its 1st 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 1st 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
