Current =0.615
Target = 0.65 / 0.685 / 0.70 / 0.74
Period = Midterm (1month -2month)
Background.
Fitters Holdings Berhad is an investment holding company, commenced its operations in the 1970s. Over the years the company has established itself as a "one-stop" fire protection specialist. Now, the Fitters Group is recognized as a leading local manufacturer of fire & safety products, which carries out specialized installation of fire fighting equipment and systems. Besides being focused on fire fighting and safety, Fitters is embarking into areas of infrastructural development and engineering solutions contracting through its engineering division.
Technical Analysis Overview
1)1st Chart
Price was on Double top and failed to breakout. This had lead the price to close to more lower.
Price again rebounded and test the resistance of cloud and once again failed. A DMA is set for trendline. Price dropped inline with DMA yesterday and today find itself a rebound to closed at 0.615.. A breach into cloud could bring price more higher with 1st resistancea at 0.625 before trying to cross out the cloud at 0.65..
2) 2nd Chart
I get a wider period. Bullish divergence is seen in MACD and AD indicators.
In AD, can see a breakout level of accumulation.
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Simple Financial Info
Expecting company to release FYE report at the end of Feb.
In early week of this year, seen directors had acquired 4millions share.. before that 300k unit was acquired. In Nov, they converted the warrant into share where price at 0.53. The company also on share buy back into treasury.
Target by Broker's House
| Date | Open Price | Target Price | Upside/Downside | Price Call | Source |
|---|---|---|---|---|---|
| 15/01/2013 | 0.61 | 0.85 | +0.24 (39.34%) | BUY | RHB |
| 22/11/2012 | 0.625 | 1.00 | +0.375 (60.00%) | BUY | HWANGDBS |
Quoting from RHB
"A “must-have” stock for green/growth funds in the making. Earnings impact from the third-party green palm oil milling ventures will be felt from FY12/13, and based on our projection, their contributions to group profits (EBITDA plus associates) will rise from 3% in FY12/13 to 8% in FY12/14 and 22% in FY12/15, making Fitters a “must-have” stock listed on Bursa Malaysia for green/growth funds. We value Fitters at RM0.85 based on 8x FY12/13 EPS, in line with our 1-year forward target PER for companies with a comparatively small market capitalisation."