AAX - The Sky is The Limit
What SPARKS our interest lately is the chart pattern of this stock.
This stock has formed a chart with a "Pan With Handle" formation after consolidating below RM 0.50 for over 2 years now.
Technically, pattern formations are strong bullish signals if they manage to breakout from their consolidating range.
The recent surge in volume may potentially test a breakout from this chart pattern. Breaking out from this price range could see the stock test immediate resistance of RM 0.50 followed by a target of RM 0.64.
We personally see any short term pullbacks or retracements for this stock as an opportunity.
This stock is suitable for investors in the mid to long term.
Fundamentally and theoritically,
AAX is a major beneficiary of the strengthening of the Ringgit as their costs and borrowings are denominated in USD.
The Ringgit has strengthened against the USD lately and this may be a positive factor for the price action of this stock.
AAX's earnings also has been improving significantly after turning around from losses in FY 2014 and 2015.
AAX managed to turnaround its losses to profits in FY 2016 with an net profit of RM230.53 million which is an annual EPS of 5.60 and is trading at a current PE ratio of 7.92x (Last 12 months).
Besides that, the parent group, Air Asia Berhad is trading at 52 week highs and closed at RM 3.33 on Wednesday. We generally feel that there should at least be some price correlation with the two companies.
In other news, Many Friends and readers on i3 have been asking where do i post my latest updates and articles in this recent bull runs.
My apologies, as I have been busy with SPARK lately. Daily Featured Charts are normally only Available for Members of SPARK. (In which you can get subscribe by filling up the form in the link provided below)
However, I genuinely and personally feel like this stock has created a Beautiful Chart pattern. It is rare to find such patterns these days. The last time I saw a chart so beautiful was when I shared my Analysis on MAYBANK (Link Below) just over two months ago before the "Great Breakout". Congrats to shareholders and followers of Maybank !! Members of SPARK know that it is our favorite as well. In addition to my analysis, I encourage readers to perform their own research as well before making investment decisions.. As the saying goes, "Caveat Emptor." Thank you for reading, Best Regards, Stanley Sim
Do like my Facebook Page too for more free content and updates! You can also contact me there !
https://www.facebook.com/stanleyinvest/
To know more about the author, click the link below !
http://stanleysim.wixsite.com/stanleysim/about
To sign up for SPARK updates, https://goo.gl/forms/rgPvzMvHyx6ZxxfL2 For My Previous Article on Maybank on 21st February 2017,
https://klse.i3investor.com/blogs/stanleysim/116295.jsp
To Contact the Author, Email me at : Stanleysim.invest@gmail.com
DISCLAIMER : Kindly ignore this article or sharing if you have strong conflicting views/disagreement with the author. All investment decisions, risks and liabilities are to be made and borne by the investor who invests themselves. This is not a buy or sell call, but rather, just a sharing of my views and analysis on this stock. I will not be held responsible or liable for any investment decisions made.
