PEC and Otto Marine

PEC -->Time to take some but not all profit ?

PEC recently had been very strong, someone is buying it on every pullback.It currently is lying at the downtrend resistance and the horizontal resistance.

TA wise , i dont think it can go much higher as RSI and stochastic have reach the overbought region.However , i might be wrong as there are no sign of divergence. If this case happened., can only rely the previous high of $0.955 and the parallel line as gauge of selling point.

Fudmentally wise , i still feel that PEC is quite undervalue stocks . I had done a analysis previously

http://sgstockstrend.blogspot.com/search/label/PEC . At current price of $0.84 , i estimate the PE to be 4.73 and P/NAV as 1.25.

I will suggest to buy PEC on pullback

Otto Marine --> Breakout or Breakdown in the making ?

Otto marine had been trading sideways since 11/06/2010 with a range of $0.40 and $0.44.It also formed a base of support of $0.405,which coincidently concide with the fibo 38.2% [double support].Other than that, it had broken out from the down trend line too. However , one bad thing i notice is that it had done a dead cross of EMA50 cutting into MA200.I am vested in it so *fingered crossed*. It might take sometime to have a breakout due to the high OS of 1.8billion shares, as compared to marco.

Fundmentally , i am pinning on the hope that it's subsidiary, Reflect to win more contracts.Anything to note is that i notice that its management is trying to find ways to expand it's business. The 1st sign is increasing stake in Reflect and the 2nd is that it had invest into Hako offshore.

PEC --> A fundmental buy ??

About PEC  http://www.peceng.com/
We are a specialist engineering group servicing the oil and gas, petrochemical, oil and chemical terminal, and pharmaceutical industries. Our two core business activities are project works and maintenance services. Our project works are currently being carried out mainly in Singapore, Malaysia, Thailand, Indonesia, Vietnam, the PRC and the Middle East while our maintenance services are currently being carried out in Singapore and the PRC. To support our business activities, we have established fabrication facilities in Singapore, Malaysia, Indonesia, Thailand and the PRC.

• Project Works
• Maintenance Services
• Other Operations

Gross Profit

Trend of revenue is moving up , with cost maintaining at a pretty constant level , thus allowing it to achieve a higher gross profit margin.

EPS for Q3 2010 surged up to all time high and 9month 2010 EPS(14C) is already > FY 2009(12c).Assuming Q4 EPS to be the average of all EPS , FY2010 EPS will be 17.76.At current price of 77.5,PE ratio will be only 4.36 times.

As we can see the above table for the peer comparasion , PEC is the smallest company among market value , but in term of valuation , it is the cheapest in term of PE ratio and PNAV ratio. However , this analysis is based on pure earning power and i didn't look into nitty gritty in the financial report. I also didnt look in the BS too.

PEC