LKL International attention for the next 2 weeks

LKL International

Trading plan:
Entry: RM0.285-0.29
Target: RM0.310-0.325
Cut loss if violate RM0.275

LKL 3616

IPO market is hot during retail investors nowadays, looking at the subscription for new small cap. IPO, for LKL itself, the IPO has over subscribed for about 900%, this phenomenon tells the fact and after the Salutica  has sought back to its IPO price, we knows that the IPOs shares will not go to far from the investors radar.

Thus, we study back LKL, the healthcare bed supplier, the IPO price itself is already undervalue from its fair value we given- RM0.32, it did reflect out this value from the first day of IPO debut but now the price has dropped toRM0.29 per shares. The odds is, we believe the price will need to go back to the high of the first day IPO trading, or at least, back to the RM0.32 fair value. The first target price of RM0.30 means that in order for the price to go higher, the RM0.30 level is  very important psychology resistance to pass through.

The analysis of company’s asset often didn’t tell the story in the share price, asset values will reflect only when the theme is right. Investors should understand the use of different fundamental tools, undervalue doesn’t only means that there’s a hidden diamond, it could also means that investors has little interest through the business or sector, just like the property sector recently.

Anyway, LKL is a new debut IPO, its upcoming  performances are still the key indicator to decide its market price, let’s monitor ahead and we will know whether the counters could take our capital how far or how it going to prosper us either by capital gain or cashflow gain.