Instacom

johorphang

Mid-Day Review & Analysis

VIVOCOM opened higher at 33.0 sens and drifted lower on moderate liquidation selling pressure and settled the morning at 31.5, off 1.0 sen from  previously.

Total volume for the morning amounted to 25.19 M shares.

Sellers were the aggressors, giving 81.7% of total trades to buyers this morning.

Despite that, buyers are holding firm, absorbing all that sellers has to offer.

News among traders that two foreign investment entities would be issue positive calls on VIVOCOM in the coming week, encouraged buying at current levels.

Currently, investors are focused on the Q1 profits results due on the third week of May and also looking for further news on fresh orders that would swell VIVOCOM order book.

Price volatility has increased over the last few days and this is expected to continue as
the uptrend expands.

The Quantitative Algorithm signal closed the morning in negative convergence and indicated that immediate prices may be headed for some band trading or would resume it upward momentum.
We would know the real answer at the close today.

johorphang

Mid-Day Review & Forecast.

VIVOCOM ended the morning slightly higher after very quiet trading ahead of the long-weekend.

A late-wave of aggressive buying with good volume lifted values from their daily lows

Traders attributed these buying to speculation that VIVOCOM may have secured further very contracts to be announced soon. Heard to range from RM150M - RM200M.

Last week , VIVOCOM announced it secured an order for RM90M.

Prices ranged from 32.5-31.5 sens and settled at 32.5up 1 sen from previously.

Total volume was low at 10.07 M shares.

At current levels, large sellers appeared to have lost their appetite to unwind positions.

The current trading situation now resembles the "calm-before-the -storm".

From a strictly technical perspective, it looks like the upward bullish momentum is about to re-emerge.

Underlying sentiment remain strong ahead of the 1Q profits results anticipated to be released on 18 May in stead of 16 May.

Price Forecast:
Prices  are expected to be buoyant  and be headed to test the most recent-highs at 34.0 sens sooner-than-expected.

Next upward price-target is seen at 38.0-40.0 levels.

The Quantitative Algorithm signal end the morning bullish and signal the start of an upward cycle.

johorphang

johorphang

End-Day Review & Price Forecast

VIVOCOM closed 1 sen higher at 32.5 after a late-round of buying lifted values back to its intraday's day's highs.

Again this was an inside-day with prices hovering within the previous day's trading range of 31.5 to 33.0.

Over the last three days, prices fluctuated around the 31.5-33.0 levels, which is a recovery of fifty percent of the last Tuesday's sell-off lows.

The important technical thing to monitor in the coming week is can prices break upwards from this three-day consolidation high of 33.0 sens.

If it succeeds, we may get to see prices moving higher to test the 2016-high at 34.0 sens.

What happens if the 34.0 sens level is punched through successfully?

Well, in the event of such an eventuality, we can expect to see some volatile trading with higher-than-normal volume that would drive prices upwards to establish a new-2016 highs and at the same time form the peak of the third-wave of the five-wave bullish cycle at 38-40 sens.

The daily Quantitative Algorithm trading signals ended the week positive and suggests further firmer trading conditions with an upward bias.

johorphang

Vivocom’s unique position presents compelling risk, reward — Analysts
Borneo Post Online   April 30

The research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) in its initiation report of Vivocom, noted that its unique operating model as a project manager and the subcontractor, minimises the risks of rigid project schedule, design variations and excessive approvals procedures and variations of construction design.

Currently, Vivocom are venturing into public housing to increase its track record for domestic public housing jobs,” it added.

Aside from that, Vivocom has a strong order book for heavy, civil, commercial and industrial engineering from China Railways Construction Corporation Ltd (CRCC) in Malaysia via a technical joint venture for project management and sub-contracting.

MIDF Research noted that while there is a risk of a slowdown in the construction sector due to policy reversal through the reduction of development expenditures by the governments of Malaysia and/or China, it anticipated a moderate degree of structural risk exposure.

Other risks in the stock include severe depletion in net working capital and structural risks pertain to contract provisions and definition especially on the role as a project management and a sub-contractor as well as the strength of the contractual covenants, such as projects that require specific technical capabilities such as railway engineering (signaling and telecommunication.)

MIDF Research noted that without the strong covenant and contract provision with clients and vendors, Vivocom would face a heightened risk of the vendors and suppliers exiting pre-maturely or unpredictability in supply or services for project execution.

Nevertheless, it pointed out that Vivocom has a strong pretax margin, positive operating cash flow, strong orderbook from joint venture strategy, and a steady recurring income from its telco segment.

“The total construction backlog is indicative of the success of its joint venture strategy with CRCC by acting as the project manager, sub-contractor or combination of both,” it opined.

Additionally, Vivocom enjoys steady recurring income from the rentals of 50 telecommunication assets nationwide with the three-year average contribution of RM25.4 million per annum on the back of an admirable 15 per cent net margin.

“The telco segment amounts to 21 per cent of its total revenue. Although, the growth of the telecommunication industry is sluggish; rentals from telecommunication assets are steady due to service provisions in contractual billings and network coverage,” it said.

Looking ahead, the research team believed that Vivocom would be able to clinch heavy, civil and heavy construction packages such as the M101 Skywheel Tower in Kuala Lumpur, in upcoming quarters.

Vivocom is also bound to be driven by the ‘One Belt One Road’ (OBOR) policy via its partnership with CRCC.

Aside from that, Vivocom has attracted institutional foreign shareholding amounting to 5.4 per cent currently, MIDF Research said.

“Moreover, Beijing Construction Group has expressed interest to participate in their equity capital structure as well as appointing Vivocom as their local project delivery partner (PDP),” it added.

Overall, MIDF Research initiates its coverage of Vivocom ‘buy’ recommendation.

johorphang

johorphang

Vivocom 0069 last Friday, Top 3 @ 32.5c up 1c volume 41.3m shares.

Vivocom largest ACE company in KLSE with mkt capitalisation of RM1.13BN.

Consistent market leader in volume with fantastic liquidity for past 8 months since September 2015.

Market talk is that Q1 reports will be super strong n solid. Price n mkt moving!

Heard Q1 reports out in week from 16th to 20th May.

That means only 9 to 14 working days.

Majority view is that it is expected to GAP UP to over 40c n beyond.

Can expect stock RERATING following Q1 reports release.

Also heard more contract wins in the pipeline, to be announced within days.

32.5c - 35c will soon become bargain prices after GAP UP.

VIVOCOM CHARGING UP n AWAY!!!

johorphang

Vivocom 0069 largest ACE company in KLSE with mkt capitalisation of RM1.13BN.

VIVOCOM CHARGING UP n AWAY!!!

FIRST EVER CLARION CALL :

CHARGE!!!
ATTACK ATTACK ATTACK!!!
NO RETREAT!!!
NO SURRENDER!!!
TAKE 33C - 33.5C LEVELS!!

💰💰💰💰💰💰👏👏👏

johorphang

Mid-Day Review & Analysis

VIVOCOM scored impressive gains in early trade and then gave back all its advances at close to settle unchanged at 32.5 sens.

Volume for the morning was higher than normal at 50.91 M shares.

Bulk of trades were at 33.5 where 40.26 M shares changed hands. Buyers were the aggressor taking 23.40 M shares from sellers.

Buyers enthusiasm appeared to be
returning as prices approach their 2016-highs.

Keen expectations on the 1Q profit results and ideas that prices would make new 2016-price highs at the 39.0-40.0 levels, prompted traders to take positions presently.

The Quantitative Algorithm signals are in mild bullish divergence and called for firmer price actions for the immediate term.

johorphang

End-Day Review & Analysis

VIVOCOM rallied towards the close on a strong wave of  buying with
prices finishing at a 2016-closing high of 34.0 sens.

Volume of 72.04 M shares were traded, the highest in four days.

Almost 60% of the trades were buying hitting sellers offered prices, a simple case of an buyers-aggression rally.

After a few days of congestion trading, why are buyers coming back in a big way?

Fundamentally speaking,  traders are back In forces at currents new-high levels is simple because they are anticipating strong shift in the fundamentals and 1Q results to alter the undervalued price of VIVOCOM.

Technically speaking, the key reason investors and traders are back in a strong way today is because prices are in a what technicians called a upward price and volume breakout day.

A very bullish phenomenon.

These traders know how to calculate the levels where prices would be head to and trade on.

Technical trader's calculation shows that the next trading level and price-target would be at around the 39.0 - 41.0 levels.

We shall have to wait and see. My observation on such traders shows that their technical trading approaches are rarely wrong!

Having said that,
the Quantitative Algorithm signals are in very bullish divergence
and confirmed that a fresh up wave has begun.