Mulpha International Bhd (Rm 0.29)

Mulpha closed at 29 sens today, 4.5 sen (18%) above its all-time low of 24.5 sens. From the 20-Year chart, one can see that its price is near its all-time low and its OBV is close to its record high.

Mulpha's last 4 quarters earnings are 1.94 sen, 0.62 sen, 1.95 sen and 3.44 sens with net assets per share at Rm 1.20.

Its latest quarterly earning of 3.44 sen is inclusive of a gain of Rm 50.39 million on disposal of subsidiaries and Rm 9.84 million on dilution of interest in associates.

If my ABC-X-ABC wave count is ultimately proved to be correct, then 24.5 sen could be its all-time record low. At 29 sen, Mulpha can be considered as value for money.

This guy called Calvin Tan has put up an article 'Top 10 Reasons Why I Am Now Turning Bullish on Mulpha!'. Click to read.

At this point I would like to point out that when a stock's price is at its all-time low and its OBV is at its all-time high like what Mulpha is having now, it is not necessary that the stock has bottomed. One good example is Price Worth International Bhd (Rm 0.115).

In September 2011, when PWorth is at 32 sen (price at all-time low), its OBV is close to its all-time high. It reported a quarterly earning of 0.72 sen a share and net assets of Rm 1.49 a share, everything looked OK to me but PWorth continued to move lower in the next 4 years and 5 months to today's 11.5 sens and its OBV continued to move higher. PWorth latest earning is 0.07 sen a share with net assets at Rm 0.47 a share.

So, has Mulpha bottomed ? I don't know. Your guess is as good as mine.

Technically, even if my hypothesis of ABC-X-ABC wave count for Mulpha is correct, at this juncture, there are two possible short-term wave counts for Mulpha.

If Mulpha can hold around its current price for a short while and then move higher, then it is forming its mini wave 2 now.

But if it continues to move lower and lower, then wave C has 9 sub-waves instead of 5 sub-waves as shown below.

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