London Biscuits Berhad is engaged in the manufacture and trade of confectionary and other related foodstuffs in Malaysia and internationally.
The reason we are looking at this company is due to it’s consistent earning in recent years.
Compared to the industry competitors, LONBISC ‘s PE is relatively low and we believe LONBISC is definitely an undervalue gem soon to be discovered.
Let’s look at the Technical Analysis.
LONBISC is currently trading at two years’ major support and share price has been consolidating for two years. Would it be the best timing for it to rally during this bull market and break the two years consolidation zone?
One of the main reason we are suggesting LONBISC is due to its fantastic RRR and downside is limited. As we can see from the chart, trading volume is building up and technical indicators are showing pretty well indication for the coming trend.
Upside : RM0.86 (14.7%)
Downside : RM 0.72 (-4%)
RRR: 1 : 3.6
Now is the more interesting part. Lets look at the LONBISC-WA. Even though share price is trading at premium, however, warrant price is near the historical low and price accumulation can be seen recently. It’s definitely a good leveraging instrument once LONBISC is awake.
Upside : RM0.26 (36.8%)
Downside : RM0.16 (15.7%)
RRR: 1 : 2.3
**Shares issued for LONBISC is 186.534 mil and LONBISC-WA is 37.281mil.
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