Extol – Weak does not mean loser

Extol has been in the IT market for about 30 years and despite various challenges, the company kept on revolving and trying to catch-up with the market pace. Inability to achieve the current quarter year budget does not means the company is not performing or might fall into any problems. In life or business, there will always be up and down and I strongly believe, there is a hidden potential in Extol.

“Common Criteria (CC) certification for its Two Factors Authentication (2FA) application using mobile devices - ePassport Suite version 3.0. The Common Criteria is an internationally recognized ISO standard (ISO/IEC15408) used by governments and other organizations to assess the security and assurance of technology products. Common Criteria certification assures that certified devices are independently evaluated and verified to meet the fundamental security requirements specified in the Protection Profile. Achieving EAL2 certification marks the completion of an intensive effort of which Extol’s ePassport was examined, tested and certified. This solution is proven to be a trusted platform for modern IT infrastructure, which is currently use by many huge financial institutions and government agencies. “With the EAL2 evaluation, Commercial and government agencies with environments that demand proven security assurance can trust Extol MSC Berhad to handle sensitive information affordably, with an internationally agreed-upon and widely adopted standard for security evaluation”

The above winning in July 2014 has increased the competitiveness of Extol in winning for more projects and to compete with other players in bidding for government project which is lucrative and will certainly bring more profit to the company.

 CHARTS & BUY RATE

Following charts will provide a clearer picture:

(1 year chart)

(2 years chart)

The buy rate of the company is considerably high despite there were changes in the senior management recently. This is a good indication of the company stability and will not be easily changed.

RETURNS

With a year return of +180.95%, the company possessed a high changes to excel again and bring another interesting price level.

(Source: bloomberg.com)

(Source: bursamarketplace.com)

The trend for tomorrow (9/3/2014) seems to be more buyer than seller (even though the price seems low, but I believe, there is good potential in the company

Looking forward for their new and continuous achievement.

  

ST target price: RM 0.34

LT target price (more than a year): RM 0.50