- Profile: GENETEC (listed in Nov 05) is involved in the design and development of customised industrial automation equipment and integrated vision inspection systems for high technology companies in the hard disk drive (HDD), semiconductor, electronics, automotive and pharmaceutical sectors.
- Poised for a downtrend line breakout. With prices holding above lower Bollinger band and support trendline, GENETEC appears to be at the tail end of its ST triangle consolidation pattern to launch a breakout soon. A decisive breach above RM0.29 (downtrend line) is likely to spur prices higher towards the RM0.30 psychological barrier and RM0.315 (52-week high), before reaching our long term objective of RM0.345 levels.
- Key supports are RM0.28 (hourly lower Bollinger Band) and RM0.275 (18 & 21 Dec low). Cut loss at RM0.265.
- Attractive risk to reward ratio with 19% upside against 8.6% downside. At RM0.29, GENETEC is trading at 1.6x P/B, about 38% lower against its peers. All in, we see a good risk to reward ratio for investor with a theoretical entry price of RM0.29 given that the downside to the cut loss zone of RM0.265 is 2.5 sen (-8.6%) while the upside to the LT target of RM0.345 is 5.5 sen (+19%).
GENETEC (0104) - Momentum Idea: Poised for a breakout - GENETEC (RM0.29/Vol:1.13m)
http://klse.i3investor.com/blogs/hleresearch/89552.jsp
