Approaching the end of the year, the Malaysian market had yet to see any excitement despite the global market reaching new high. For example, Tencent had become a company with a market capitalization of more than USD 500 billion, and the US DJIA Index had started to challenge 26,000. Despite this bullish event, Malaysian equity could be lofty now for several reason such as -
1. November is a month where most of the company will furnish their 3rd Quarter financial result.
2. As 2017 approach to the end, much of the fund will undergo a portfolio evaluation, and will start to trim equity position on company that are not really performing up to expectation.
The situation had almost been the same last year. As experience tell, it will be good now to invest into some fundamentally performing stock which are still within the valuation, and have the room to appreciate.
One of the stock that I would like to point out will be this almost forgotten "Aluminium" stock which could one day, become a next PMetal hopefully. As for me, even becoming 30% of PMetal is good enough.
This stock is no stranger for you and me i suppose, is none other than A-Rank Berhad (Arank - 7214)
As you can see, technically speaking, Arank had been trading in the range of RM 1.05 to RM 1.15 for almost the whole year of 2017. Technically speaking, anything near RM 1.05 would be a good point to accumulate on the stock. Short term wise, Arank can easily rebound towards RM 1.20 should the coming quarterly result is performing well.
One of the most important thing in order for the stock to perform is to have it's result talking directly to the investor. Attached below is the FYE 2017 result for Arank where EPS is 13.5 cents, and giving out 3.25 cents as dividend to investor.
As you can see, there isn't much good stock left in KLSE which are giving good dividend and trading at single digit PER. For the case of Arank, it is only trading at a PER x8 which is still had the room to appreciate. As this stock is suitable for long term investment, and not for flipping purposes, it is understandable on why it's PE is slightly lower.
However, I believe Arank will be trading higher soon as investor start to realize the steady performance of Arank, and also rewarding investor with dividend.
Do you think Arank is a good for investment now ? Now that is your call again.