The one and only time I ever blogged about SMRT's stock was in January 2012. Back then, I said that the downtrend was intact and that we could see the share price go lower. That was really a reading of the short term charts. Nothing could have prepared me for what I see today.
SMRT's share price is breaking every single support level and I won't be surprised if it should test the next support at $1.035 soon.
Click to enlarge. |
If Maybank Kim Eng is right, SMRT's stock is now only worth $0.60 a share and they arrived at that target price using a PE ratio of 14x. So, even at $0.985 a share which is another support level, SMRT's stock is way too expensive. Yikes!
In the short run, there could be a bounce in the share price as I see higher lows in the momentum oscillators. Selling pressure could ease a bit for a while but the downtrend is very much intact.
Short sellers could renew their efforts in the event of a rebound in share price and they would probably do so as close to the resistance as possible. They could use the 20d MA as a guide and that is at $1.16 now.
Looks like it is going to be a long and bumpy ride down for SMRT's loyal shareholders.
Related posts:
1. SMRT: Downtrend intact.
2. Do not love unless it is worth the loving.
3. When to BUY, HOLD or SELL?
2 comments:
It is still 2 times NAV
Hi Tien,
Indeed, it is. :)
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