Wednesday, 2 May 2012
Amedia: Can It Maintain Its Uptrend?
For those who dare to catch a falling knife on Asia Media, surely they will strike some handsome gain.
Amedia's share price dropped substantially from 43sen in early March, without any obvious reason. It breached through its support at 33sen but was able to hold onto its next support level at 30sen. It stayed around 31sen for a few days before staging a slow and good rebound. For those risk takers, the best time to enter is 31-32sen when the falling momentum was halted temporarily.
Amedia: may correct itself soon
Currently Amedia's share price has gone up and reached its resistance at 38sen. Speculators may start to sell with a gain of 20%. Its share price may head north or south after this, depends on market sentiment. If it head north above its uptrend line, then it may continue its uptrend.
Amedia has submitted its proposal to transfer to main board to security commission on 24th April 2012. If it is approved (which should be the case), it should push the share price upwards. However, it also proposed a private placement of not more than 10% of total shares at 37sen per share.
The 2012Q1 financial result will be announced this month. Judging from the whole FY2011 financial result, it seems like Amedia has no significant growth in its revenue and net profit for the last 4 quarters. As it will need to invest quite a lot of money in the new "live telecast" thing which has still to prove its success, there is a risk that the forthcoming financial result may not be a good one.
Yesterday there is a protest claiming that Negeri Sembilan's billboard business is monopolized by a private company Semarak Media. Is it related to Maha Semarak in which Amedia hold 70% of its shares? May be just a coincidence.