I thought that after one of those analysts' call that Digi.com is fully valued,the interest for this counter will surely wane.
Looking back, this counter saw traction for one short period in February and once in early March.
In February, it roared to new heights scaling beyond the RM4.30 level on 8 February. The highest was at RM4.32 before it went sideways. On March 1st and 2nd, it again moved up with volume up the RM4.15 level. Since then, it has gone below the RM4 radar and is currently skipping along the RM3.90 level with much headwinds.
The impression one gets is that the price of Digi has been reached and the stock is now at its best value. As such, only long term investors knowing the value of a well managed company will dare to hold on to it. Also,EPF has been selling down the counter to get cash, puncturing the Bursa for sometime. Digi was not spared.
It has been about more than two months now that Digi shares have been looking for a breakout.The resistance price level seems to be at about RM3.93.
Interestingly, RHB has been giving out calls for investors to pick up this stock.
If I remembered, they recommended the share will hit a top price of about RM4.20 again.
Today, they put out another call stating the new found confidence and optimism that it will pole vault to RM4.40.
Are they pulling our legs?
One thing I am sure, Digi is awaiting for the BNM directive to allow Telenor to buy shares beyond 50% as PM Najib has already endorsed the liberalisation of the telecommunications sector. BNM was been napping here.
With this development, more shares will be mopped up from the market and Digi will then find traction to move up to RM4.40 and more.
At this price of RM3.90, if the Digi shares should jump to RM4.40, that represents a leap of faith of some RM0.50 sen. Deducting about RM50 for brokerage and ancillary charges,that would allow a clear profit of RM450.00.
Ain't that a steal?
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