TSPC Begins Consolidation
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Friday, 20 April 2007 16:05:06
StockWatch (Jakarta) - Shares of pharmaceutical product distributor PT Tempo
Scan Pacific Tbk (TSPC) that trade at IDR830 per unit are seen to begin the
consolidation, after moving closer to the fair value of IDR836 per unit.
Muhamad Karim, an analyst of PT Reliance Securities Tbk (RELI) said that based
on the daily chart, the downtrend channel line seems to have been broken up on
April 17 which opens a chance for trend reversal.
Karim said that actually the reversal indication has been indicated by the
Momentum and the MACD indicators which have moved in positive divergence
pattern with the actual price.
However, Karim said the confirmation of positive divergence in the MACD and the
Momentum will be given when the shares break the nearest resistance line around
levels IDR850/860. He recommends a speculative buying if the IDR850/860 levels
confirm a breakout.
TSPC is considered to have an attractive valuation for it has lower
price-to-earning (PE) and EV/EBITDA versus the sector. The shares have PE and
EV EBITDA of 11.8x and 5.3x each, lower than those of the sector which are
15.5x and 8.2x.
Meanwhile, based in the discounted cash flow (DCF) method, the shares have fair
value of IDR836 per unit or equal to 12.7-10.8x the core PE in 2006-2007.
(esta/bud)
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