AWC @ Accumulation Phase?

According to CMT, the accumulation phase represents informed buying by the most astute investors. If the previous trend was down, then at this point these astute investors recognize that the market has assimilated all the so-called “bad” news.

The price moves during the accumulation phase are slow. The accumulation phase often falls into the end of a downtrend where ordinary investors believe that more bearishness is likely and the overall outlook is pessimistic. For the smart money, however, it can be a good point to enter such a market when the price is at a low. At the same time, this does not mean that a trader should try to pick a bottom during a bear market; that’s what makes trading the accumulation phase difficult.

During the late stages of a bear market, a trader should look for extended periods of consolidations, a shift of how swing highs and lows manifest on the charts – which is another key point of the Dow Theory.

Is AWC Bhd in an accumulation phase?

AWC Bhd is an investment holding company which provides total asset management services such as integrated facilities management and engineering services to building owners. AWC’s current share price has been consolidating in range bound (since 2018) with no significant change in volume.

AWC AP.png

Insiders Movement

Some recent acquisitions by major shareholders / management:

AWC insiders.png

Reasonable Valuation Multiples

Reasonable valuation multiples: Price-to-earnings (<9x) and price-to-book (<1x)

AWC_PE.png

AWCPBR.png

Quick desktop valuation

AWC Desktop Valuation.png

Positive view by analysts with a target price of RM0.80
AWC - Research Analyst.png

 

In a net cash position

AWC_BS.png

Overall prospects: Cautiously Optimistic

AWC Prospects.png

Overall comments

Given the overall fundamentals appear ok for this company, why doesn’t the share price of AWC trend up? Unless it is in an accumulation phase but for how long….

Posts are not investment advice or endorsements. Please refer to general disclaimer of this blog.

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