VADS Berhad

VADS’ core businesses are the management of computer network systems and call centers. It is an information technology (IT) company that can provide total solutions for companies seeking to outsource their internal computer and network requirements.

Standard and Poor's (S&P) quoted in his stock commentary today that "We reiterate our Buy recommendation and raise our 12-month target price to MYR7.00 (from MYR5.44 adjusted for a 1 into 2 share split)".

VADS intends to pay out 40% - 60% of net earnings as dividends giving reasonable yields forecast at 3.6%. With MYR19 mln net cash at end-Jun. 2007, we believe the conservative payout policy leaves VADS with sufficient reserves to make further strategic acquisitions or failing which, to raise the payout going forward. (S&P)

VADS Berhad Weekly Chart

From the weekly chart showed that VADS Berhad stock trading at 423.6% fibonacci extention level which already achieved the second target price. A doji star occured where the doji gap above previous candle on the uptrend sometime showing that the trend will change. This signal confirmation can be validated after the next candle occured. On the techincal indicator 14-weeks RSI showing that the price is in overbought area at 78. Additionally bearish divergencce occured in daily and weekly chart RSI.

Even the S&P recommendation is to buy this stock in his report, my TA said that we have to wait until we get a good price which I assume this stock will make correction before its continue to north direction.

Trade on your own risk. Happy learning and happy investing!