Tuesday, August 26, 2014

Latitude All Set To Move Higher

Latitude is all set to move higher. The stock is now at its all time high. The chart shows a strong uptrend which is likely to continue.

For the 9 months ended 31.3.14, the EPS equal 47.66 sen. Thus, the average EPS for each quarter work out to be 15.88 sen (47.66 / 3)

EPS for the 3 Qtrs are  follows: 1Qtr = 15.02 sen; 2Qtr = 19.52 sen; 3Qtr = 13.12. Traditionally, the 4 Qtr is better than any of the previous quarters.

On a conservative estimate, I shall take the 4Qtr EPS to be 15.88 sen. Thus EPS for the full fiscal year ended 30.06.14 will come in at 63.54 sen. At the last traded price of RM3.65, the PE is at an undemanding low of 5.74.

Latitude has a very strong balance sheet with little borrowings. If the stock is traded at a PE of 7.5, the price would be RM4.76!!!

My recommendation: Hold on to your shares or buy more at the present price.

You listen to me at your own risk.