M1 has again experienced another selling down on last Fri - 22nd January 2016. The selling down is way to overdone. Short term is due for a rebound . Friday again has touched the new low of $2.24 and managed to close higher at $2.28.
Both MACD & RSI are also being driven to an oversold territories which is indicating that a rebound is imminent.
Look for a strong rebound to move up to test $2.44 then $2.51 if the momentum is strong enough.
Of course, the trend is still downtrend. Once has to do their own home work and trade extra cautiously.
M1 - 21st January 2016
M1 from TA point of view is on a downtrend mode as reflected on the chart.
The current price of #2.32 is hovering below both 14SMA & 25SMA lines which is generally quite negative.
From the chart you can notice that there were 3 Black Candle sticks /black soldiers causing the price to slight down from $2.55 to $2.29 within the span of 3 days. Th dropped down is viewed as quite overly extended. Short term wise it is overdue for a rebound.
Also both MACD & RSI are showing sign of oversold that may be indicating that a rebound may be happening anytime.
Co-incidentally ,STI is also oversold and is now approaching the support level at 2520 points that may see a technical rebound soon.
The price of $2.32 is about PE 12.21 times (EPS of 19 cents) which is viewed as quite a good price to accumulate given the yield is about 6.4% per annum ( 15.3 cents dividend).
The final dividend of 8.3 cents had just been declared and may help to support the price from sliding further.
Good time or during recession people will still need a Mobile phone . Therefore, this defensive counter is quite resilient and not really affected much by the economy.
I reckon that the short term target price of $2.56 is possible base on PE 13.5 times.
Long term target price should be somewhere around $2.85 ( about PE 15 times) of which I view is quite reasonable.
(Trade base on your own decision)
