DSONIC - An attempt to break the 52WH ATH and beyond
If you follow my posting before, you should realized that DSONIC-WA is one of my long term counter especially post COVID-19 impact. The warrant moves alongside in trend with its mother share thus it has been one of my favorite counter so far.
Let's look at its mother share DATASONIC.
Datasonic is currently the sole provider of the MyKad since 2012, and is the sole provider of the Malaysian e-Passport since 2016. It is also the personalisation solution provider for Europay, Mastercard and Visa in Malaysia to more than 10 local and foreign banks.
Fundamentally, it is a strong e-government company providing services for mykad, e-payment and much more
- EPS: 4.42 (Very good)
- PE Ratio: 35.07 (OK)
- ROE: 20.95 (Very good)
- NTA: 0.211 (lower than current price , but normal for technology company to have lower NTA)
- Financially a very stable company with consistent positive net profit since 2013.
- Shareholding: Mr Chew Ben Ben & Dato Haji Razali has been actively collecting more shares of DSONIC. Coincidence?
Let's look at some of the news lingering around DSONIC
1) Since March 2020, Mr Chew Ben Ben and Dato Haji Razali (DIrector of DSONIC) has been actively buying more shares.
2) When the directors/owner of the company started to accumulate more shares, its an obvious sign that there is something positive going on in the company. What is it? Only the CEO knows inside out. Our view maintains that the company has reached the bottom from March 2020 and the only way is up.
3) 21 May 2020: FOCUS media published a news on DSONIC. "DATASONIC to bid for RM500mil i-Kad immigration tender". A card specific for immigrant working in Malaysia.
“The i-Kad tender requires the tender company to have experience in providing card supply and software application development and must be a 100% bumiputera company in order to qualify for participation. Therefore, Datasonic meets all the requirements,” he said.
Although the deadline submission for the bid is 6th June, we have seen the bidders are having rally especially DSONIC, PRESBHD, SCICOM and IRIS.
Based on the news, it was forecasted that DSONIC is qualified being its capability as the sole service provider for IC.
Chart wise, we had a good rally last friday to 20% up. Possibility that the price will stays here or rally up until at least 6th of June, but what to worry if you invest in a very good fundamental company?
Let's look at its mother share DATASONIC.
Datasonic is currently the sole provider of the MyKad since 2012, and is the sole provider of the Malaysian e-Passport since 2016. It is also the personalisation solution provider for Europay, Mastercard and Visa in Malaysia to more than 10 local and foreign banks.
Fundamentally, it is a strong e-government company providing services for mykad, e-payment and much more
- EPS: 4.42 (Very good)
- PE Ratio: 35.07 (OK)
- ROE: 20.95 (Very good)
- NTA: 0.211 (lower than current price , but normal for technology company to have lower NTA)
- Financially a very stable company with consistent positive net profit since 2013.
- Shareholding: Mr Chew Ben Ben & Dato Haji Razali has been actively collecting more shares of DSONIC. Coincidence?
Let's look at some of the news lingering around DSONIC
1) Since March 2020, Mr Chew Ben Ben and Dato Haji Razali (DIrector of DSONIC) has been actively buying more shares.
2) When the directors/owner of the company started to accumulate more shares, its an obvious sign that there is something positive going on in the company. What is it? Only the CEO knows inside out. Our view maintains that the company has reached the bottom from March 2020 and the only way is up.
3) 21 May 2020: FOCUS media published a news on DSONIC. "DATASONIC to bid for RM500mil i-Kad immigration tender". A card specific for immigrant working in Malaysia.
“The i-Kad tender requires the tender company to have experience in providing card supply and software application development and must be a 100% bumiputera company in order to qualify for participation. Therefore, Datasonic meets all the requirements,” he said.
Although the deadline submission for the bid is 6th June, we have seen the bidders are having rally especially DSONIC, PRESBHD, SCICOM and IRIS.
Based on the news, it was forecasted that DSONIC is qualified being its capability as the sole service provider for IC.
Chart wise, we had a good rally last friday to 20% up. Possibility that the price will stays here or rally up until at least 6th of June, but what to worry if you invest in a very good fundamental company?
