Analyse dgb Asia short term to long term price base on magic trade in Ringgit Malaysia

DGB Asia Bhd's short-term to long-term price analysis indicates a bearish trend with potential for slight recovery in the short term. Here's a detailed analysis:

1. Current Financial Health: DGB Asia Bhd's financial health is under strain, as evidenced by a negative net income of -3.34 MYR for the last quarter and a total liability of 115.44 MYR. This indicates that the company is currently unprofitable and has significant debt.
2. Market Performance: The stock has experienced a significant decline, with a 52-week range of 0.05 MYR to 0.19 MYR. The recent trading volume is low, with a beta coefficient of 1.29, suggesting low volatility.

3. Technical Indicators:
   • The 50-day SMA is RM0.10, indicating a bearish trend as the price is below this moving average.
   • The stock is forming a morning star pattern, which could be a bullish signal, but this should be interpreted with caution as it is just one pattern and market conditions should also be considered.
4. Price Forecast: The stock price is forecasted to show a slight increase in the short term, with predictions for October 2024 to November 2024 of RM0.1032 and RM0.131, respectively. However, the forecast for the longer term is not optimistic, with predictions for May 2025 showing a decrease to RM0.047.

5. Market Sentiment: The sentiment around DGB Asia Bhd is bearish, with a Snowflake Score of 2/6 for valuation, 0/6 for future growth, and 0/6 for past performance. This suggests that analysts do not see significant growth potential or past performance to support the stock price.
6. Competitive Position: DGB Asia Bhd operates in the software and engineering consultancy sector, which is competitive. The company's competitive advantages and challenges within this sector are not specified, but its involvement in AIDC solutions could be a unique selling point.

In conclusion, while there is a slight positive short-term price forecast, the overall trend for DGB Asia Bhd's stock price is downward, and the company's financial health and market sentiment are bearish. Investors should exercise caution and consider these factors when making investment decisions regarding DGB Asia Bhd.