Tuesday, 1 November 2011

SRIDGE - A new horizon, a positive Q3 for 2011

This stock had been quiet over the week, without much heavy volume being traded around at the moment still. But I should have quite a number of reason of why it should be a good to be accumulated stock at the time being, especially when volume is low, and focus is low as well. This will always be the best moment for accumulation before springing into the real action once again.

Sridge, as covered previously in the past, had been posting a very good and consistent result. Despite it's good result, one thing that is lacking is the reflection of the result itself.

Let's have a quick flash back on what we can see in Sridge. On the 1st quarter for year 2011, Sridge had turn the table, almost 100% around with a good powerful head start, banging on a EPS of 1.86 cents per quarter.


Despite it's good result being announced out, the market had been lingering in a midst of doubt and confusion, whether it is just too good to be true.
At the highlighted area, 31st May is the date where the Q1 result is being announced, and 1st and 2nd June is the market responses towards Sridge. Guess, this stock is still alien towards a lot of people, and not until people began to realize the good news, it took around 1 week.

As the market continue to remain in doubt, whether Sridge can continue its good result for the next quarter, as it just at times look to good to be true, or a one of show for a good trap. But let's witness what do we have again for Q2 FYE 2011.
An EPS that is not losing out too much, 1.78 cents for Q2, with a total of 3.64 cents for the first 2 quarters for FYE 2011.

That must be some wow effect. As part of the market continue to linger in doubt, I believe that it will be a good moment for those high risk appetite player to believe in this company in providing a consistent result for Q3 again.

At a forward earning PE of 7.2 cents (approx),it is now trading at a low PER of 3.14 only, in which I think that they could be more to come, as Sridge had marked its presence both in the trading market, and the business world.

It's industry, mainly in providing technology solutions, I believe will continue to meet demands as Malaysia continue its mass expanding plan. Part of it includes the hosting services for Blackberry in the email system, which had been the main selling point for Blackberry phones. Should this continue to eat up the market in the future as Blackberry conquers its market share, I believe Sridge will not be a path to far in seeing a greater growth in the near future, along with other services that Sridge is providing.

Bone's TP: A short term TP of RM 0.27.
Mid Term play, TP RM 0.325 based on forward PER x4.5

Cheers and happy trading.

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