Technical Analysis of CMC Kamal on 9 Jan 2017

Technical Analysis of CMC Kamal on 9 Jan 2017 (after trading hours)

This is no buy/sell recommendation - just a trial to see if Technical Analysis (works to an extent) in Dhaka Stock Exchange.

Fundamental Analysis: I usually do not buy companies that only give Stock Dividends. CMC Kamal reports some profit and EPS “growth”. It changed its reporting month to June ’16.

PE around 14.

Directors held only 31% share at EOY ’16.

It has 1:1 Rights Share Offer pending for approval from BSEC.

There is also an expansion/BMRE story.

	2013	2014	2015	1H '16
Profit	99	116	138	66
EPS	1.30	1.35	1.45	0.60
Dividend	12.5%B	12.5%B	13%B
NOCFPS	1.1	0.8	0.8	0.6

Fundamentally, it seems like an OK company. Nothing special.

But there might be some “potential” opportunity from a Technical perspective. In the long-term weekly chart, we can see that if it can break Resistance around 25, then there is significant up-potential.

It is for the break-out risk takers – High Risk, High Gain.

Stop loss would be 20.90.

As the Index is nearing Supply Zone, be wary of opening new positions, especially at High Prices.

Let us see what happens . . .