ASIA MEDIA - Reaching The Bottom?

Asia Media (AMEDIA) currently is 1 of the most active counter in the stock market. It start moved up sharply from 30 cent range in June this year and reach its peak of RM1.15 at the end of September. Right after the announcement of proposed bonus issue & free warrant, the stock price starting to drop dramatically from RM0.90 to around RM0.35, lose about 70% of market cap from its peak.

While I believe the shrink of the stock price is mainly because of the speculative activities, there are some fundamentals in the company actually. AMEDIA, a out-of-home transit TV company, mainly offering broadcasting services & facilities on public transport. Currently its presence covers buses in Klang Valley as well as Johor Bahru.

Look back on the past few quarter result, we can find that the revenue & profit of AMEDIA is actually improving significantly. The current PE of AMEDIA stands at around 5.5 times. I believe their revenue & profit will continue growing in the next few quarters, following the launch of Digital Terrestrial Television Broadcasting (DTTB) services & their intention of expanding their business in other states, i.e. P. Pinang.

Anyway, I think the current price of AMEDIA will still remain volatile due to speculative activities. Since AMEDIA is still a startup company & it doesn't pay even single sen of dividend, I believe this is quite reasonable to enter AMEDIA if the price hits below 5 times of PE.



Note: The above content is just a blogging activity that purely share my investment thoughts & ideas and should not be used as recommendation to buy or sell any securities. I may already have position in the above securities. Any action that you take from the opinions or information of this blog is solely on your own responsibility. Please consult your investment advisor before you make any investment decision.