Black Horse Of MCO Beneficiary- REVENUE (0200)!!
Dear valued readers, welcome back to “The Huat Project”. We would like to present our findings on Black Horse of MCO Beneficiary - REVENUE(0200)
We are sure that most of you can recognise that Clients of Revenue (0200) (shown below) are very well known and incorporated in our daily lives. Especially TaoBao. While we have other e-commerce here in malaysia, we cannot deny that Taobao is definitely one of the top e-commerce platform.
Since MCO, many responsible citizen who are at home are blessed with a lot of free time to browse for shopping items, especially when Chinese New Year is around the conner. Every time a transaction takes place, Revenue (0200) benefits.
There are 3 highlights for Revenue (0200)’s news flow which we would like to highlight.
1. Revenue (0200) acquires 40% stake in Artificial Intelligence (AI) firm Wannatalk for RM5 mil. Under the agreement, Wannatalk will guarantee profit of RM300k and RM500k for FY20 & FY21 respectively.
2. Revenue (0200) also recently teamed up with Tech Giant - Huawei Malaysia to develop e-services hub to help develop digital transformations for small medium sized enterprise (SMEs). https://www.theedgemarkets.com/article/huawei-malaysia-revenue-group-team-develop-eservices-hub
3. On 5 November 2020, Revenue (0200) proposed transfer listing to mainboard, and on 7 December 2020 general meeting, the special resolution has been accepted.
Revenue (0200) broke out from its all time high resistance of RM1.52 last Friday (05/02/2021) to closed at price of RM1.59, which is all time high. The upward resistance of Revenue (0200) has depleted and diminished, meaning to say that there is very little seller as the price of Revenue (0200) moves up. The next possible resistance for Revenue (0200) is RM2.03.
With the recent resistance of RM1.52 cum support, and immediate resistance of RM2.03, the Reward to Risk ratio is 6.2 times, which is very appealing.
We strongly believe that Revenue (0200) is a fundamentally strong company which should not be overlooked. With the technical confirmation of price action movement that Revenue (0200) are ready to rally up north, backed by news such as profit guarantee from Wannatalk, teaming up with Tech Giant- Huawei Malaysia, and a Mainboard transfer listing…
What will you do?
DISCLAIMER: This post serves as an educational analysis and is never meant to be a buy/sell call or recommendation. Investors must always do their own due diligence before making any investment decisions. The author of this post is not liable in any way for any decisions made by any individual.