Technical Analysis of RSRM Steel on 3 March 2017

Technical Analysis of RSRM Steel on 3 March 2017

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

Currently, I am finding it difficult to find stocks that might give decent returns at “low” risks. RSRM is a risky trade.

In this article, I had mentioned that RSRM might reach 70:http://imti77az.blogspot.com/2016/12/trying-to-predict-un-predictable-don.html

It went even further and reached Historical High of 94.1

After some retracement, it is again making an up move. There is a chance it might test previous high of 94 and if it moves further, 100+ could be a possibility considering its earnings below:

	2012	2013	2014	2015	2016	1H '17
Profit	156	167	155	273	271	280
EPS	2.86	3.06	2.84	4.16	3.45	3.24
NOCFPS		-7.00	2.90	-15.00	1.50
Dividend			5%C	5%C	10%C
			20%B	20%B	10%B

Profit in First two quarters of 2017 is more than last year’s annual profit!

Current PE is 13 – with its growth and dividend payout scenario, it seems undervalued to me.

However, it is still a risky trade in this market condition. Stop Loss might be 7% from entry price.

No risk, no gain . . .