ABLEGLOB SHORT TERMI bought this yesterday, my purpose for this post , is that i want to share & help especially to those newbies & amateur. I was so busy that i was unable to post it until today
(i am also a newbie+amateur. please do not believe anything i posted/share)
i decided to initiate the position in view of Absorption ( As attched)
Absorption is a term, in a way that the big boys AKA composite man , absorbing incoming supply from the weak money
Absolute pure wyckoff , nothing else
$KLSE-INFOTEC: Intrinsic Value (based on IMPEGFS) INDEX:KLSE -INFOTEC
Integrated Magic PEG Formula Scores (IMPEGFS) @ Quoted Stock Price RM 0.81 (the higher the better)
= √
= √
= 2.8400426922
Intrinsic Value (based on IMPEGFS)
= IMPEGFS × Quoted Stock Price
= 2.8400426922 × 0.81
= 2.8400426922 × 0.81
= RM 2.30
or
= √ × EPS
= √(58.85×32) × 0.053
= RM 2.30
$KLSE-INFOTEC: EV/EBIT ÷ EBIT Growth Ratio @ RM0.81 @ FYE2023 FRINDEX:KLSE -INFOTEC
EV/EBIT ÷ EBIT Growth Ratio @ RM0.81 @ FYE2023 FR Result
EV @ RM0.81
= 0.81×363,229+389+119+407+107-10,780-8,445
= 276,012.49
EBIT
= 25,792+38
= 25,830
EV/EBIT
= 276,012.49÷25,830
= 10.6857332559
EBIT Growth
= 100×(25,830÷16,683-1)
= 54.8282682971%
EV/EBIT ÷ EBIT Growth Ratio @ RM0.81 @ FYE2023 FR Result
= 10.6857332559÷54.8282682971
= 0.194894597 extremely undervalued
Thought on Joel Greenblatt's ROIC:E/P approachINDEX:KLSE -INFOTEC
youtu.be/GUV3GHUePRk?si=lHLAJSyDMlfbbbzb
Joel Greenblatt has decrypted the secret of valuation, that there are 2 ultimate variables in determining the intrinsic value, namely ROIC (Return on Invested Capital) and E/P (the inverse is P/E).
This insight is in line with the essences enshrined in Warren Buffett and Charlie Munger's valuation mental models :
1. “Investors should remember their scorecard isn't computed using the Olympic-diving method:
Degree-of-difficulty doesn’t count.
If you're right abt a business whose value is largely dependent on a single key factor that is both easy to understand & enduring, the payoff is the same as if you should correctly analyze an investment alternative characterized by many constantly shifting & complex variables.
- Warren Buffett -
2. “The higher return a business can earn on its capital, the more cash it can produce, the more value is created. Over time, it is hard for investors to earn returns that are much higher than the underlying business’ return on invested capital.”
- Warren Buffett -
3. “Over the long term, it’s hard for a stock to earn a much better return than the business which underlies it earns. If the business earns six percent on capital over forty years and you hold it for that forty years, you’re not going to make much difference than a six percent return – even if you originally buy it at a huge discount. Conversely, if a business earns eighteen percent on capital over twenty or thirty years, even if you pay an expensive looking price, you’ll end up with one hell of a result.”
- Charlie Munger -
Which approach do you prefer?
Joel Greenblatt's ROIC:E/P approach or Peter Lynch's PEG approach?
Is it possible to merge Joel Greenblatt's ROIC:E/P approach and Peter Lynch's PEG approach into a single formula?
Kindly figure it out, it's worth to do so.
$KLSE-INFOTEC: Thought: Profit Per EmployeeINDEX:KLSE -INFOTEC
Wishfully the Gross Profit per Employee could return, stage by stage, to RM 740k for FYE2024 & RM 848k for FYE 2025 with ever increasing Revenues.
With RM 740k Gross Profit per Employee, that would translate to around RM 370k Net Profit per Employee.
With RM 848k Gross Profit per Employee , that would translate to around RM 424k Net Profit per Employee.
Or more, if the regional subsidiaries expansion in China, India, Singapore and Japan can bear more growth fruit in Revenues with the recent high GPM and NPM maintained.
$KLSE-INFOTEC FYE2023 Number of workforce (Employees)INDEX:KLSE -INFOTEC
Number of workforce (Employees):
26 permanent + 5 contract
= 31 employees in total
(dated LPD 23 May 2022, reported in IPO Prospectus dated 20 June 2022, page 132)
60 employees in total
(dated 31 May 2023, reported in NST News).
The number of employees have been doubled in a year, indicating rapid and aggressive APAC regional expansions have taken place.
Important point emphasized in the NST news: The team is still growing in line with its expansion drive.
That would translate into that more employees are expected onboard driven by continual business growth and in turn additional employees will push growth further on.
$KLSE-INFOTEC FYE 2023 Segments' GPM StudiesINDEX:KLSE -INFOTEC
FYE 2023 Segments' GPM Studies:
IT Infrastructure Solutions Segment GPM
= (19,142÷43,551)×(43,145÷43,551)
= 43.54%
Cybersecurity Solutions Segment GPM
= (990÷2,994)×(2,990÷2,994)
= 33.02%
Managed IT Services and Other IT
Services Segment GPM (Recurring)
= (16,686÷22,378)×(20,563÷22,378)
= 68.52%
Trading of Ancillary Hardware and Software Segment GPM
= (935÷5,374)×(5,231÷5,374)
= 16.94%
Pretty Impressive!
MTEC, possible rebound soon?>> Stochastic almost bottom.
>> RSI & MCDX still overbought too.
>> Awaiting it to give strong signal, perhaps soon?
Monitor for potential trade
I don't need to convince people to invest and win, it's a choice to let go if you don't believe the processes due to bad experiences you have encountered with others. But it's better you know a lot of people are still getting profitable outcome from this platform.
Disclaimer :
Please be informed that all stocks pick are solely for education and discussion purpose; it is neither a trading advice nor an invitation to trade. For trading advice, please speak to your remisier or dealer representative.
Infoline Tec Group @KLSE: Revenue FYE 2024Forecast by APEX SECINFOTEC@KLSE
Apex Securities
academy.apexetrade.com/filestore/research-pdf/20240226_Infotec_4QFY23_Results.pdf
Revenue FYE 2024Forecast by Apex Securities
= 120.5M
Assuming the Net Profit Margin remains at 26.8%:
Net Profit FYE 2024 Forecast
= 120.5×0.268
= 32.294M
$KLSE-INFOTEC: EV/EBIT ÷ EBIT Growth MultipleINDEX:KLSE -INFOTEC
EV/EBIT ÷ EBIT Growth Multiple
EV@RM0.805
= 0.805×363,229+389+119+407+107-10,780-8,445
= 274,196.345
EBIT
= 25,792+38
= 25,830
EV/EBIT
= 274,196.345÷25,830
= 10.6154217964
EBIT Growth
= 100×(25,830÷16,683-1)
= 54.8282682971%
EV/EBIT ÷ EBIT Growth Multiple
= 10.6154217964÷54.8282682971
= 0.1936122027 Extremely Low, Extremely Undervalued
MULTIPLE RETEST ZONE / CUP AND HANDLE PATTERNFrom my analysis, it appears to be forming a Cup and Handle Pattern. Or I can call it Multiple Retest Zone at the moment.
Additionally, when applying the BBMA Technique and observing the Weekly Timeframe, there's a notable "Arah Kukuh Candle," indicating a bullish signal. However, it's possible that there may still be room for retracement.
MULTIPLE RETEST ZONE / CUP AND HANDLE PATTERNFrom my analysis, it appears to be forming a Cup and Handle Pattern. Or I can call it Multiple Retest Zone at the moment.
Additionally, when applying the BBMA Technique and observing the Weekly Timeframe, there's a notable "Arah Kukuh Candle," indicating a bullish signal. However, it's possible that there may still be room for retracement.
INTA LONG TP 0.41Time Frame: 4H
Sentiment: Overbought
Forecast: Bullish
We can see a strong support and buying momentum around 0.34-0.36, selling power is weak.
Bar price action and the volume, showing buyers' power increase.
expecting it can break the resistant level 0.375 and hit 0.41+
Write your thought in the comment session :)
P.S
Please, note that an oversold/overbought condition can last for a long time, and therefore being oversold/overbought doesn't mean a price rally will come soon, or at all.
Like my works? Please hit the Like, Follow and Share or tip me a coin :)
Thanks!
Disclaimer
This information only serves as study references, does not constitute a buy or sell call.
Dialog, be careful of triple top?>> 2.35 as resistance
>> RSI and MCDX at overbought level. Might pullback, worst go for correction.
>> If already entry, protect profit / capital.
We cannot control how much we win. But we can control how much we lose. Focus on what you can control!
Disclaimer :
Please be informed that all stocks pick are solely for education and discussion purpose; it is neither a trading advice nor an invitation to trade. For trading advice, please speak to your remisier or dealer representative.
HIGHER HIGH PATTERN RECOGNIZEDRegarding Edelteq, it appears that the stock is predominantly moving in an Uptrend Bias.
On the weekly timeframe, there seems to be a formation of a Fair Value Gap.
Additionally, it's worth noting that the volume during the breakout is increasing, which provides a promising indication of bullish potential.