I love to perform some stock screening to find unpolished gem of stocks. Similar to the terms of “unsung heroes”, I term some of these stocks as “unsung counters.”
The reason is plain simple. These counters are fundamentally strong with practical business sense.
My first pick – CAELY (7154).
From business perspective, the demand for undergarments will never fade, whatever the global economic situation is.
One of the most responsive market reactions during Covid 19 outbreak is to diversify CAELY’s products. The production of face masks using readily available raw materials with some modification to the design and manufacturing process was a bold move during the MCO.
The product diversification revenue should be well reflected from Quarter 1 of CAELY’s 2021 financial year reporting.
CAELY’s NTA is RM 0.50. The last traded price on Friday 17th July was RM 0.365.
Based on their unaudited reports for the year ended on 31st March 2020, Manufacturing Sales (i.e. referring to their undergarment business) contributed 88.43% to their overall Group’s revenue. This is an increase of 5.6% from the previous corresponding year of 83.72%.
CAELY has been one of the most successful Original Equipment Manufacturers (OEM) with clients mostly from Europe, Canada, and the United States of America.
From technical perspective, CAELY is now traded above its 20, 50, and 100 Moving Average:
MACD formed a golden crossover on the 3rd April 2020
50 MA crossed on the 28th April 2020.
100 MA crossed on the 6th May 2020
52 week-high was RM 57.5 on the 15th May 2020
RSI crossed the 50% line on the 8th July 2020
I foresee that it should test the level of RM 0.45 very soon.