Technical Analysis of Square Textiles on 13 Jan 2017
This is no buy/sell recommendation - just a trial to see if
Technical Analysis (works to an extent) in Dhaka Stock Exchange.
Although quite a number of shares are showing weakness in
structure, the Index is not yielding. It is unleashing weapons after weapons from
its armory to keep moving higher. It even has a few trump cards up its sleeves as
in large caps (including a few MNCs).
It is becoming risky to open new positions. But Square Textile
might be a low risk buy.
Fundamental Analysis: It is a good company but profit and EPS has
declined in last 2 years. There are expansion stories but they are not
reflected in profits yet. PE already ~ 18.
|
|
2012
|
2013
|
2014
|
2015
|
|
Profit
|
829
|
837
|
541
|
668
|
|
EPS
|
7.10
|
6.23
|
3.66
|
4.11
|
|
Dividend
|
18% C +
15% B
|
20% C +
10% B
|
20% C +
10% B
|
25% C +
10% B
|
|
NOCFPS
|
5
|
5
|
6
|
8
|
On a separate note, one thing I did not like is that Square
Denims profits will not be booked under Square Textile.
Now to the Technicals: The daily candlesticks are uncouth – like
a journey by trawler to St Martin’s Island. But the weekly chart seems better.
It might be a relatively “safer” buy on a down day.
Stop loss would be 68.
Let us see what happens . . .
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