MMODE

MMODE on the 11th of August announced a 417% increase in 1H profits compared to a similar period last year. I always like companies that post massive earnings increase that are accompanied with bullish price action. And the chart reflects this.

Source: ChartNexus

Google Finance has this to say about the company:


"M-Mode Berhad (M-Mode) is a Malaysia-based investment holding company. Through its subsidiaries, M-Mode is engaged in the provision of mobile contents and data application services with platform connected to mobile network operators in Malaysia and China."


I also learned that they run www.sempoi.com.my, www.qq.com.my and game.mmode.com.my. I can somehow relate to this company as they are selling products that are meant for my generation.

Upon closer inspection, the fundamentals of the company are pretty strong for an ACE market company:

Source: Equities Tracker

Revenue and net profit has been on an uptrend ever since 2006. Cashflow from operations look decent as well. Hasn't got much debt so it could theoretically lever itself to grow further and expand their market.

Amid current market volatility, I am a little hesitant to bid at the current price of 29 sen. I might be interested if it goes down to 27-27.5 sen level, with a stop loss in the 24-25sen region.

I always go for at least 2:1 reward to risk ratio. Assuming a 2.5-3 sen risk, that means my TP should be around 32.5-33 sen.

Game plan:

Entry price: 27-27.5 sen
Stop loss: 24-25 sen
Target profit: 32.5-33 sen

I am currently 100% in cash. Closely monitoring this stock. No position yet.