KLCI - MITRA - 9571 - Dec 2014 Update

UPDATES...
In this post I will update the earning prediction for Mitra based on contract secured since Mar 14 and latest company's financial control. The result is very encouraging and further strengthen my belief that this would be one of the star performer for the next 1-2 years...


STOCK PERFORMANCE ...
MITRA is doing really well despite two significant corrections in Oct & Dec. The last price is RM0.95 (vs RM0.59 back in Mar) and I can't imagine how far can it go once revenue inflow from contracts start to kick in ...

CONTRACT & PROFIT MARGIN...
MITRA secured contracts worth RM1135 million since March 14, expect to contribute positively to its earning starting from 2015 in the form of progressive payment.

In addition to that, Mitra seems manage to improve its profit margin for the past 2 quarters from ~8% to ~10%. GOOD NEWS !!! 

PROSPECT ANALYSIS...

Using small cap PER@7 and latest company profit margin of 9.8%, 2015 is going to be a good year for Mitra judging on the strong order book in the pipeline. Are you ready ?? =)

INVESTING STRATEGIES...

• Dollar cost averaging to limit downside of market fluctuation
• Fibonacci retracement suggests RM0.92 (1st support) is a good entry price, shall the price drops below 1st support we should then look at RM0.85

At your own risk of course ... Happy investing ... =)