VIVOCOM ended the morning unchanged at 34.0 after having ranged from 33.0-34.0 sens.
Trading was slow ahead of the weekend with 27.61M shares changing hands.
Sellers were the more aggressive lot, giving 59.9% of trades to buyers.
Over the last couple of sessions, I noticed that the selling aggression volume was low, ranging from 20m to 50m shares.
This is considered normal as that is only about 1.11% to 1.19% of VIVOCOM share base of 2.6B.
From a strictly technical perspective, prices have been hovering around the 33.0-34.5 levels for the last three days.
This is viewed as a construction development considering the fact that prices are now at their historical-highs.
Base on this, traders can conclude that the present underlying strength of VIVOCOM is strong ahead of the 1Q profits results anticipated to be released now on 12 May.
My next upward price-target is adjusted higher to the 39.0-41.0 levels..
The Quantitative Algorithm signal end the morning in bullish divergence and called for more upward trading.
VIVOCOM establish fresh historical-high at 35.0 sens today on aggressive fresh buying-support and closed with gains of 1.0 sen at 34.5.
Total volume surged to its highest in four day at 66.72 M shares.
Breakdown of today's volume shows that buyers were stronger, taking 81.5% of the total trades from seller's offered prlces.
Traders attributed the current strength and emergence of fresh buying-interest to the coming 1Q16 profits report due for release this week.
Market sentiment and guesstimates are currently friendly-to-bullish to VIVOCOM 1Q results.
The immediate technical price-target remains unchanged at 39.0-41.0 sens and the mid-term price-objective is now adjusted higher to the 50.0-53.0 sens levels.
Meanwhile, the consistent Quantitative Algorithm trading signals ended the day on a strong bullish note and called for more upside trading in the nearterm.
VIVOCOM rebounded from an early round of weakness due to profit taking and closed the day unchanged from previously at 34.5 sens
Overall volume was moderate at 43.47 M shares.
Buyers stayed firm the whole day and paid up on 73.7 % of today's trades.
The key reason for this is due to the fact that traders, both short-term and longer term investors are comfortable to buy in anticipation of a very positive 1Q16 profit report, which is due for release anytime now.
Current talks in the marketplace is that an eventual figure of RM 17.5 M or better would trigger- off another phase of aggressive buying.
The Quantitative Algorithm signal kept to its bullish constructive signal and indicated that the upward cycle has room for further upside expansion.
VIVOCOM prices charged into uncharted territory and established
new historical-highs before closing the day at 35.5 sens, up 1.0 sen from previously.
Strong rumors circulating in the marketplace today that the 1Q16 PAT results
expected to be release at the close of trading tomorrow would show a massive jump, encouraged some aggressive investors buying.
A total of 81.2 M shares changed hands. The buyers were clearly the aggressors by taking sellers offer on 69.7 % of the day's trades.
Today's volume was the highest in eleven days. This is a good sign. It means that today's rally was a positive-cash-flow -volume-driven breakout.
The upward chart breakout today clearly shows that the bullish momentum is back into this stock.
The immediate price target now stands at 39.0-42.0 levels.
A successful punch above this minor hurdle would set the impetus and generate fresh positive moment to drive prices higher to test its next chart-target at the 49.0-53.0 levels.
Yes, the Quantitative Algorithm signals at close was very bullish and continues to call for more upward trading.
VIVOCOM made fresh highs at 36.5 and closed the day half sen higher from previously at 36.0 sens.
Trading volume surged to 113.00 M shares and some profit-taking selling ahead of the 1Q16 results were well absorbed.
A moderate active round of selling in late-noon took prices to an intraday-low of 34.5, but the move was short- lived as buyers emerged strongly and moped up all the sellers.
Traders attributed the sudden round of selling to force-selling from a stockist.
The much anticipated 1Q16 PAT resulted were released today after the closed and came as a bullish surprise to traders at RM19.87 M.
Many traders expect to see a strong opening on Friday and some traders are even calling for a price gap-up tomorrow.
Prices are generally expected to enter into uncharted territory and establish new price highs in the coming session.
The Quantitative Algorithm ended the day constructive and remained bullish for the near-term trend.
KLSE ACE MARKET BIGGEST COMPANY MARKET CAP NOW RM1.25B ASSUMING ALL WARRANTS CONVERTED.
TODAY GAP UP DAY BASED ON TECHNICAL CHARTS TO 39c - 42c LEVELS.
CIMB NEW TARGET PRICE REVISED TO 78C!
PREVIOUS TP 67 ONLY.
HEARD COMPANY ANNOUNCING BONUS SHARE ISSUE LIKE LAST ROUND 1 FOR 3 AGAIN.
MARKET TALK ALSO VIVOCOM JUST RECEIVE ANOTHER MAJOR CONTRACT OVER RM500M.
GAP UP AAR. GRAB ANYTHING BELOW 40C.
SHARES HEADING TOWARDS 48C NEXT WEEK. BFM: Vivosom International 1Q Net Profit Surge 27 Times To RM 25 Million From The year Ago Driven By Its Construction Business (hourly business news)
KUALA LUMPUR (May 13): CIMB IB Research has maintained its “Add” rating on Vivocom International Holdings Bhd at 36 sen with a higher target price of 78 sen (from 67 sen) and said Vivocom’s annualised 1Q16 net profit smashed house expectations by coming in 76% above our previous full-year forecast.
In a note May 12, the research house said Vivocom’s margins were boosted by the final certification of works on several building jobs.
“We raise our FY16F EPS by 31% but maintain FY17-18 EPS.
“Maintain Add with a higher SOP-based target price of 78 sen, with construction earnings valued at 10.5x, 30% discount to the sector P/E of 15x.
“Potential re-rating catalysts are continued flow of new contracts and potential bonus issue,” it said.
Unfortunate timing today
Msci rebalancing Maybank and Cimb weighting got reduced so index got whacked.
Profit taking after news was expected. Yesterday and today's sell down have chased out quite a bit of speculators, the price should stabilize at current level and our concern now is the overall market sentiment
KUALA LUMPUR (May 13): Vivocom International Holdings Bhd dropped 2.78%, falling in line with the sudden fall in Bursa Malaysia, which slumped 24.38 points to 1,624.6 points in early trade.
The stock, which has gained 27.27% year-to-date, dipped one sen to 35 sen with 95.2 million shares done for a market capitalisation of RM931.4 million. Over the week, it has been the top active counter.
Its sudden dip in share price surprised CIMB IB Bhd analyst Marcus Chan who expected Vivocom to continue its uptrend, following its outstanding first quarter ended March 31, 2016 (1QFY16) results.
He opined it could be a result of the overall Malaysian stock market’s performance that has taken a hit with banking and oil and gas related shares falling.
“I am surprised, because I expected it to do well today, because of their outstanding earnings. I believe Vivocom would do better next week, as it expects a RM700 million contract coming up. It should recover,” he told theedgemarkets.com
In a note today, Chan said CIMB raised Vivocom’s earnings per share by 31% to impute higher gross margin, given its strong 1QFY16 results.
Target price was raised to 78 sen, with an unchanged “add” call, he said.
Yesterday (May 12), Vivocom posted a 27 times higher net profit for 1QFY16 at RM25.12 million, from RM923,000 a year ago, driven by the group’s construction business.
Earnings per share rose to 0.81 sen, from 0.09 sen last year.
Its revenue for 1QFY16 also rocketed 20 times to RM141.54 million, from RM7.04 million.
Vivocom said the construction segment contributed 88.9% or 125.81 million to the group’s total revenue under the quarter under review, while its manufacturing division contributed 5.7%, with the remaining 5.4% coming from its telecommunication towers business.
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