STOCK PICK 2017 - SENDAI

Eversendai Corporation Berhad (SENDAI) is a company under the construction industry which has a strong presence in Middle East, India and South East Asia. The company is well known for its performance in delivering projects for high rise buildings, power plants, Oil & Gas upstream and downstream including process and industrial plants as well as infrastructure and composite structures in the Asian and Middle Eastern regions.

Based on their press release, Sendai achieved a historic RM2.7 billion order book as at 30 September 2016 and secured RM1.8 billion worth of new contracts to-date with the possibility to exceed the RM2 billion threshold before the end of the year 2016. 2017 would certainly be an exciting year for Sendai. Having made impairments on their assets in Q1 and Q2 FY 2016, there may be a possibility of a turnaround in net profits in Q1 and Q2 of FY2017 especially with the large order book mentioned in their press releases. The chairman also stated that “Eversendai will continue to grow in its established geographical markets and expand beyond to improve the Group’s performance in the coming years.” The stock is also currently trading far below its Net Assets per share of 1.32 as of 9 Sept 2016. Putting just these key facts and statements together, I believe there are bright prospects for this stock in 2017

As I do specialize in TA, let me present to you the chart of Sendai. Sendai has been gaining momentum the past few weeks and may stage for a potential breakout. A strong breakout of 0.64 with high volume may see the stock test the first resistance of RM 0.705 followed by the second price target of RM 0.90. The stock may find support at RM 0.60. There is huge upside and potential for this stock in 2017.

TP 1 : RM 0.705 TP 2 : RM 0.90

I believe investing in today’s financial markets requires both FA and TA, accuracy, logic and adaptability. Combining all of them together would enhance your final investment decision. As mentioned before, I do encourage people to start young, or at the present moment as investing is a skill that all should have.

Disclaimer : The above article written is for sharing and educational purposes only. This is not a buy or sell recommendation made by the author. The author will not be held liable or responsible for any investment decisions made.