What is the safest price to buy mtouche berhad without losing
9/4/2024 06:56pm
The safest price to buy mTouche Technology Berhad (KLSE:MTOUCHE) would be around RM0.09 to RM0.11. This range is based on the current technical indicators and market trends, which suggest that these prices offer a reasonable entry point with potential for growth, while minimizing the risk of significant losses.
1. **Current Financial Performance**: mTouche Technology Berhad has shown a narrowing of its net loss in the second quarter of 2024, with a RM0.001 loss per share compared to RM0.006 in 2Q 2023. This improvement, along with a revenue decline of only 7.2% from 2Q 2023, indicates a stabilizing financial situation.
2. **Market Cap and Volatility**: With a market cap of MYR37M and a highly volatile share price over the past three months, the stock carries a significant risk of loss. However, the recent stabilization in financials suggests a potential for the stock to find a more stable trading range.
3. **Technical Analysis**: The stock's 52-week high is RM0.065, and its 52-week low is RM0.035. Historical data shows that the stock has experienced a significant decline over the past five years, with a 5-year change of -96.19%. However, the current price is closer to the 52-week low, indicating a potential for a rebound.
4. **Analyst Ratings**: There are no available analyst ratings or earnings estimates for mTouche Technology Berhad, which makes it difficult to rely on external opinions for guidance.
5. **Return Trends**: The company's return on assets is poor, which could indicate a lack of profitability and potential for loss. However, the recent earnings and revenue improvements suggest a potential for recovery.
In conclusion, while mTouche Technology Berhad carries significant risks due to its small market cap and past performance, the recent financial improvements and the current price near the 52-week low may offer a safer entry point for investors. It is important to closely monitor the stock and be prepared for potential volatility.