Technical Analysis of Doreen Power on 17 Feb 2017

Technical Analysis of Doreen Power on 17 Feb 2017

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

Although I do not trade IPOs, I could not resist putting up Doreen Power’s chart – it seems to be on a bull run.

But first, let us try to look at the Fundamentals. The profit and EPS of last two quarters were great – but the previous four quarters’ profit and EPS were horrendous. The management of Doreen stated that construction of two new power plants and related operational costs affected the profit of those quarters.

Their profit from 2012 to 2015 is OK. With capacity expansion, we could expect future growth.

Numbers of 2016 went hay-wire with:

• Low Profit
• Low EPS
• Poor ROA & ROE
• Huge Debt

Numbers from Annual Report 2016:

Capacity:

With capacity expansion, we could expect future growth.

Now to the Technicals: It had a run from 50 to 148 – and then around 50% Fibo Retracement to 100.

Now it has broken a down trend line and is slowly moving up with steadily increasing volume. If it breaks Resistance at 130, then after 148 there is hardly any Resistance.

Stop loss would be 110.

It’s for the risk-takers . . .