Technics Oil & Gas – A Good Entry Level
Current Technic Gas & Oil stock price looks like a good entry level both technically and fundamentally.
Technical Analysis
- The stock price broke out from a Falling Wedge with a price target of $0.63.
- The stock price came back to test the Falling Wedge previous resistance and rebounded from this resistance turned support level.
- Since then, the stock moves above 20D, 50D and 200D MA and stay above 78.6% FR support.
- A “higher high, higher low” up trend chart pattern is observed.
Fundamental Analysis (Base on latest quarter financial performance)
- Increasing Net Operating Cash Flow
- Dividend about 4.8% (base on $0.57 stock price)
- ROA = 14.9 (Annualised)
- ROE = 32.1 (Annualised)
- Order Book stands at $82 million.
- Management expect better FY2010 than FY2009 base on current order book and project schedule.
- Company shares buy back recently between $0.565 and $0.57 these few days.
- PE = 12.89 (base on $0.57 stock price) versue 2008 PE of 20.6 and 2007 PE of 26.4
Sinotel – Testing Support of a Falling Wedge
Sinotel has been on down trend recently after breaking 20D, 50D and 200D MA support. The stock appears to be forming a Falling Wedge and Sinotel is currently testing the support at about $0.395 (Falling wedge support at 50% Fibonacci Retracement Level). If this support is broken, Sinotel may go down to $0.317.
