Stocks rally on strong 3Q earnings on Tuesday. Dow jumped 547 points. How high this current wave ii of C can go? Your guess is as good as mine. Be careful, once the wave ii is completed, the wave iii down can be very painful.
Fintec Global Bhd (Rm 0.055)
A potential goldmine for consideration at the next market bottom. It is on its way of record breaking lows. No reversal sign yet but its OBV has shown divergence.
Fintec, previously known as Asia Bioenergy Technologies Bhd. is a technology incubation and investment holding company providing management and strategic advisory services, research related activities, business networking and funding for its incubate companies.
Besides its own non-listed companies involved in Bioenergy Technology and Oil & Gas sectors, Fintec also holds strategic stakes in several listed companies namely Focus Dynamics Group Bhd. (24.16%), Vsolar Group Bhd. (15.67%), AT Systematization Bhd. (15.06%), NETX Holdings Bhd. (11.16%) MLABS System Bhd. (11.2%) and DGB Asia Bhd. (7.37%).
Amongst its listed companies, the top performer is Focus Dynamics that operates premier food and beverage outlets. Focus stock price has moved from 2.5 sens in August 2016 to a high of 25 sens by October 2017. By August 2018 the price dropped to 12.5 sens
When Focus moved from 2.5 sens to 25 sens, Fintec reported record quarterly earnings of 10.19 sens, 4.67 sens and 4.44 sens a share due mainly to fair value gain in its investment holdings. But subsequently when Focus dropped from 25 sens to 12.5 sens, Fintec quarterly earning also dropped in tandem, it lost 7.54 sens and 5.53 sens a share in the last two quarter and its share price has dropped from 22.5 sens to 5 sens.
From the above chart one can see that the price drop for Fintec is overdone. Its fundamental is strong.
After taking into consideration of its receivable and payable, it still in a net cash position of Rm48 millions. Divided by Fintec 602 million share, that gives 8 sens a share. Fintec is holding 500 millions share of Focus, that is 0.83 Focus share for each Fintec share. Focus closed at 16 sens today. 0.83x16 sens gives 13.28 sens a share to Fintec. Plus the 8 sens of cash, Fintec is worth 21.28 sens and it is selling at only 5 sens.
The other 5 listed companies are small and their respective share prices are quite flat.
The 2-Year Chart (% gain) for Fintec/Focus is very similar to that of Insas/Inari.
Does it mean Focus may have a run up to complete its major wave 5 but Fintec may not run, same as Insas.
Lynas
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