Reflections on Volume

Big volume without further upside equals distribution
Big volume without further downside equals accumulation

Volume tends to peak at turning points
Volume often precedes price movement
Volume is a relative study

Wednesday, January 23, 2013

StarBiz presents five stock picks

With the sudden market selldown, some counters have been beaten down to attractive levels. StarBiz presents five stock picks, compiled by YVONNE TAN.


THE best reason to look at this stock, probably, is that technically, it is in oversold territory. The stock has lost 4.47% since Monday.

Its outlook for this year includes expectations that revenue would grow by 5% to 7%, while margins for earnings before interest, taxes, depreciation and amortisation are expected to remain stable.

Telco counters are also known for their generous dividend yields.

Based on its third-quarter numbers, DiGi's dividend yield is running at 4.5%, or 23.8 sen net per share. Its growth story remains intact, according to analysts.

As at the third quarter of 2012, DiGi's revenue market share expanded to 28%, up from 27.5% from end- 2011, largely driven by its above peer average net adds over the past two years, which was also accompanied

by a fairly stable, if not higher, average revenue per user or ARPU, said Affin Research.

It believes that its month-onmonth growth momentum will persist as it consolidates its market share in the youth and Malay ethnic group segments, two key growth areas.

With its revenue and growth trajectory intact, the research house is forecasting core dividend per share (DPS) to improve in the current financial year (FY13).

Although its FY13 DPS assumption is based on a 100% dividend payout, it suspects there is potential for upside to its DPS forecast of 22.6 sen for FY13.


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