Dapai: It is Coming…..

Dapai has been moving up quietly recently and closed with a bullish marubozu candle with 8.7 million shares traded today. Today closing is above the 200D MA and also 61.8% Fibonacci Retracement Level.  Technical Indicators like MACD, RSI, Stochastic, Bollinger Band and SAR Parabolic show the bull is coming back. However, this stock need good trading volume to confirm the breakout to start an uptrend.

Fundamentally this stock is super under value with PE just 3.8 (stock price at $0.245) but unfortunately no one is interested. Average PE for past 3 years = 3.6.

Base on FY2009 Financial:

  • Dividend Yield = 5.4%
  • NAV = $0.30
  • Net Profit Margin = 14.2%
  • ROA = 19%
  • ROE  = 21.5%
  • Current Ratio = 4.9
  • Debt to Equity Ratio = Net Cash

Watch closely on this stock! Good for long term buy and hold until other peoples find out this gem.

This Post Has 2 Comments

  1. Bob Jones

    Looked at this stock in detail recently, it is probably the cheapest consumption stock in Asia. Similar businesses trade at 15-20x times earnings this is 3x, I wonder if I am missing anything here. Lastvquarter earnings was very impressive as well.

  2. Marubozu

    Bob, you are absolutely right! Fundamentally Dapai looks impressive and the current stock price is very cheap! Plus good dividend!

    I attended the last AGM and the following are the few potential catalysts to trigger a bull run of this S-chip stock:
    (1) Dual listing
    (2) Acquisition of an International Brand
    (3) Opening of new stocks to boost more sales
    (4) Increase in worker’s salary will boost more demands due to increasing in purchasing power.

    This is a potential multibagger penny stock!

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