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TA gurus , any comment on this stock???
Taiwan-based PCB manufacturer Eucon was higher as valuations for the firm look attractive at current levels given its capacity upgrade and strong growth prospects, dealers said.
Eucon is on track to start operating its new PCB manufacturing plant in the fourth quarter this year, which will boost its manufacturing capacity to 700,000 square feet from 400,000 sq ft currently, PS said.
"With the additional laser drillers added in 2006 and the new mechanical drillers to be added in 2007, we are looking at growth of 40 pct in terms of net profit level for 2007," PS said in a client note. "Valuation remains undemanding, with Eucon currently trading at only 5.1x forecast 2006 PERit added.
The brokerage has a target price of $0.40.
Hi zhuge_liang
Many thanks for the information as Eucon was one of the counters I had eyes on.
Europtronics has proposed a distribution of Eucon shares via way of a dividend in specie. The distribution basis is 200 Eucon shares for every 1,000 Europtronics shares. The distribution shares are part of Europtronics's shareholding of 153.54m Eucon shares, which represents 26.94% of Eucon's total share capital. Upon completion of the exercise, Eucon will cease to be an associate of Europtronics.
The exercise is potentially negative for Eucon stock as it weakens the shareholding structure and creates possible overhang.
Extracted from my blog http://kelongstocks.blogspot.com
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[b]Technical Analysis[/b]
My earlier posting on Friday morning at 8:30am (see below) highlighted the ascending triangle formation with resistance at 31.5 cents and supports at 28 and 27 cents. I mentioned that a breakout above 31.5 cents on high volume could see prices heading towards technical target of 40 cents. Well, this breakout happened on record volumes on Friday late afternoon, triggered by DMG's bullish report reiterating their buy call with target price of 76 cents. Congrats to all who bought in the morning when prices dipped to the support line of the ascending triangle.
................continued at my blog
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[B]Fundamental Analysis[/B]
Didn't have time to do a detailed analysis in my earlier posting on Eucon's results so doing a proper valuation now.
1Q FY06 revenues and profits were lower than 4Q FY05 due to 1Q being a traditionally weaker quarter for PCB players generally (same case for Multichem although less pronounced). Nevetheless, 1Q FY06 P/L significantly better than 1Q FY05 due to higher utilisation of laser drilling segment (again similar to Multichem) and full fledged contributions from PCB operations. Laser drilling services boosted by strong global demand for handsets, game consoles and gadgets like MP3 players.
Revenues are forecasted to continue to grow in subsequent quarters on the back of continued strong demand for laser drilling services, margins and net profits will continue to improve as utilisation increases.
..........continued at my blog
Extracted from my blog http://kelongstocks.blogspot.com
[B]Technical Analysis[/B]
Ascending triangle formation with resistance at 31.5 cents and supports at 28 and 27 cents. 27 cents is also support based on blue uptrend line. Breakout above 31.5 cents on high volume could see prices heading towards technical target of 39.5 cents.
Fundamentally, Eucon has announced very good 1Q FY06 results as its laser drilling business performed well. 1Q FY06 revenues were lower than 4Q FY05 as 1Q is traditionally a weaker quarter.
..........continued at my blog
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[B]Fundamental Analysis[/B]
Business is precision drilling and manufacturing of PCBs, laser drilling saw surge in revenues, expected to be growth driver for 2006. Substantial shareholders been buying up shares after 3Q results (from 11 to 12.5 cents).
Forecast 60% increase in revenue and net profits for FY2006. Relative to comparables, Eucon looks undervalued since it is trading at only 1.2x Price/NTA (forecast).
.........continued at my blog
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Fundamental Analysis to be posted tomorrow morning at 8:30am.
[b]Technical Analysis[/b]
Breakout from all time high of 20.5 cents on high volumes. Technical target for breakout (rounding bottom like formation) is 35 cents.
Supports: 20.5 cents (all-time high resistance turned support), 19.5 cents (resistance turned support), 18 to 18.5 cents(recent resistance and support).
Resistances: none!
Indicators: Bullish and confirming price action, RSI and Stochastics all deep into overbought zone, MACD histogram spike up in positive territory. Record volumes seen today since initial 2 weeks from IPO.