Friday, March 19, 2010

Aztech Technical Analysis (19th March 2010)

A nice rally by STI today, with penny tech stocks on the bull.

My Aztech has risen to a high of 0.265 today, before coming back to end at 0.255.
To me, I was thinking initially whether to sell Aztech to take a quick profit... In the end, I decided against it for three reasons:

1) Aztech's potential is big if they can make their diversification work out beautifully. The only thing is whether we trust the ability of the management to succeed in this.

2) Aztech's NAV is 23 cts, but to me, using DCF, their value is still worth more than the current price.

3) From the technical analysis point of view, 25 to 25.5 cts is the breakout point of the symmetrical triangle, where it will become a support for now. No point selling at the support. The chart is as shown:

The pullback from 0.265 to retest 0.25 is expected as this is a common technical behaviour. In addition, it was above the daily Bollinger Band at that region, so closing at 0.255 is a healthy signal.

Shall see how it goes... If it goes below 23 cents, my buying price, I will consider loading more.... after all the homework I have done on this company, I believe in it's potential.


  1. Hi JW, Sorry to trouble you again. Do you think you are going to load more of Aztech based on current price 0.200-0.205? Or probably you will continue to wait and see if there is any further dip?


  2. Hi Hyruga,

    I will probably continue to wait. Meanwhile, I will just collect the dividends from Aztech :)


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