SEAL – MYR1.22 Stock Code 4286
SEAL’s positive signals above suggest a very strong weekly Wave 3 and 5 uptrend. Short-term buy on dips for SEAL with firmer support and clear upward target areas of MYR1.28, MYR1.57 and MYR1.88. Stop-loss is at MYR0.90.
Maybank-IB does not have coverage on SEAL.
below: SEAL Weekly Chart (click to enlarge)
SEAL made a major weekly Wave 2 low of MYR0.40 (May 2013) with grossly oversold and bullish signals. All its positive signals above suggest a very strong weekly Wave 3 and 5 uptrend. It is likely to break into higher territory, as it breached its key resistance areas in a very clear upward weekly Wave 3 and 5 move. Short-term buy on dips for SEAL with firmer support and clear upward target areas of MYR1.28, MYR1.57 and MYR1.88. Stop- loss is at MYR0.90.
SEAL surged to make a fresh 52-week high at MYR1.26 on 27 June 2014 since our initial recommendation in mid-June 2014. The stock continued to rise on the back of strong investor interest since SEAL reported a significant improvement in the group’s profitability. SEAL announced its 3QFY14 results at the end of May 2014. Its revenue and profit-before-tax for the 9 months FY2014 rose almost 100% and 280% year-on-year, respectively. The significant improvement in profitability was attributed mainly to the property development segment, while the
profitability of the other segments was a touch softer. According to the results announcement, the management expects continued improvement in the group performance in the final quarter of 2014.
A check of the Bloomberg consensus reveals that no research houses cover SEAL. The stock is currently trading at a very attractive historical PER of 3.93 times as well as a fair P/BV ratio of 1.36 times. Looking at the reported shareholding changes on Bloomberg, there were no major acquisitions and disposals of shares reported recently.
Seal Incorporated Berhad (SEAL) invests in properties and operates as contractors of buildings. Through its subsidiaries, it develops and manages properties, extracts timber and is involved in trading of logs and sawmilling.
by Maybank IB