MAMEE technically positive.

MAMEE try to break above RM2.18 resistant for a few times since new year, and succeed on 15/1/10 attempt, closing RM2.19. Ascending triangle forming, with resistant turn into immediate support.
With its good fundamental, it is time to ACCUMULATE.
TP: RM2.58

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ZHULIAN technically looks promising.

Company Profile
An investment holding company involve in manufacturing and selling consumer products mainly costume jewelery(25%) and nutritional(20%) via MLM concept. Founded 1989, listed in KLSE on 2007. Its revenue contributed by extensive network in Asian region being Malaysia(60%), Thailand(32%) and others.

Financial Result
For the past 5yrs, PBT has been firm from RM52.7m in FY04 to RM95m in FY08, which is pretty consistent. For the 9months FY09, it had recorded net income of RM57.3m, RM18m shy of FY08 net profit RM74.7m, which i think is achievable. It current ratio is healthy at 4.6x thanks to more effective sales receivable.

Technical Outlook

Closing price RM1.65 on 8/1/10 is an immediate support. Fibonacci shows RM1.65 as a breakout point too. Few days observation is needed to ensure it stay above. If so, i can see a CUP forming by end of this month. MACD cross down is a bad sign tough.

Stock Valuation
ZHULIAN has a P/E of 7.6x and div yield of 6.7% based on rm1.65. Based on its steady performance for the past 5yrs, and dividend payout policies of at least 60% net profit. This stock is attractive.

Overall

FY09 last quarter result due to announce in 2 weeks time. I dont expect its eps to match 3rd quarter as we know its 3rd quarter use to be a peak season in conjunction with Hari Raya celebration. However, the full year earning should be as good as FY08. I also fancy the technical outlook and this is the time to ACCUMULATE.

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