Last weekend, 16 Feb, The Star published an article titled "Wegmans aims for Main Market". For more details, click here. In the article, the part which caught my attention is the last few paragraphs. Extracted from the article, as follows. Asked why investors should consider Wegmans shares, Law says the stock holds more value, given the company's growth plans and production capacity expansion. Based on the figures provided by the company, its latest price-to-earnings (PE) ratio is about 12 times. The company expects its PE ratio to improve significantly once its production capacity doubles, which would potentially raise the group's revenue and bottom line. Since its listings last year, the stock has risen by about 21%. Currently, Wegmans' market capitalisation stands at RM172.5mil, based on its closing share price pf 34.5 sen yesterday. In the first nine months of FY18, the furniture maker recorded a net profit of RM6.37mil, against a revenue of RM67.2mil. There are no comparative figures for the proceeding corresponding period.
Several days later, on 20 Feb, TheStar published the company's quarterly earning. For details, click here. Check out the chart attached below, how the share price reacted in relation to the news reported.
Daily chart.
What do you think the share price outcome in the coming days ?
Source : 1) Metastock 2) www.thestar.com.my and TheStar newspaper. Note
: 1) "Power Within Metastock"
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Since it broke the final S-Trader Trend Tracker resistance level at RM0.2498 on 15 Feb, the price action failed to close successfully within or above the resistance zone formed by RC2-1 (RM0.2711) and RC2-2 (RM0.252) on several occasions.
During
1st half trading session today, the share price successfully penetrated into
the resistance zone with
closing price at RM0.26 before break-time with relatively very high volume traded.
If the price action remains strong at the end of trading day, there is a possibility it may attracts more activities to this counter Daily chart. (Based on 21 Feb lunch break-time closing price)
In the previous posting, we shared some interesting events on this counter. Today, we shall look at the progress. After 2 Feb publication by The Star titled "Green Packet 2.0: Digital transformation taking shape", the share price had moved upward. On 9 Feb another article been published by The Star titled "Stocks in focus", click here for more details.
The following trading day, 11 Feb the share price gap up on market opening. Thereafter, the share price started to lose momentum and slowly pullback until today (lunch break-time). Daily chart. (Based on 18 Feb 2019 break-time closing price)
Is the price rebound going to happen in near future with the current pullback ?
The share price successfully closed within the resistance zone formed by RC1 and RC2 at break-time. If the share price remain strong at the end of trading day with strong volume traded, it may be an alert for some interesting event in near future.
During 1st half trading session today, the share price successfully penetrated the resistance zone formed by RC1-1 (RM0.304) and RC1-2 (RM0.288) with closing price at RM0.29 before break-time. The share price failed to do so on 22 Jan 2019 as it briefly touched the resistance zone's border with relatively low volume transacted. But today, relatively very high volume traded in relation with the strong price closing before break-time. If the share price remains strong at the end of trading day, there is a possibility of more upward trajectory.
