Asian Pay TV has dropped to $0.710. Day range is 0.705 – 0.725. This is an all time low price since its debut on 29 May 2013. According to Bloomberg, average analyst target is $0.857. Estimated yield is around 11.4%. RSI is also trading at all time low at 14.4.
Asian Pay has slid 14.8% from an intraday high of $0.815 on 21 Oct 2015 to the current price of $0.710. The underperformance is stark compared to the 4.3% decline in the FTSE ST Real Estate Investment Trusts Index (“FTSE Reit”) over the same period. With reference to Chart 1 below, Asian Pay is entrenched in a strong downtrend with declining exponential moving averages (“EMAs”). Indicators such as RSI and MACD are at or near all time lows, indicative of extreme selling pressures. There may be a short term rebound due to the oversold pressures. However, based on the chart now, the rebound, if any, is unlikely to exceed $0.750.
Near term supports: $ 0.700 – 0.705 / 0.675
Near term resistances: 0.715 / 0.730 / 0.740
Some noteworthy points
1. Asian Pay is going to distribute $0.02 / share and is going to ex div on 9 Dec. In its latest 3QFY15 results, management affirmed full year FY15F guidance to be 8.25 cents, similar to FY14. Barring any unforeseen circumstances, this means that it is going to distribute $0.0225 / share in its 4Q results, to be announced in Feb 2016. As of now, company did not mention their FY16F guidance;
2. The above estimated target price and estimated dividend yield are obtained from Bloomberg. It is noteworthy that analysts can raise or reduce their target price or / and estimated dividend yields anytime;
3. There may be certain bad news in Asian Pay (unknown to me) which results in the price being battered down more than the FTSE Reit.
Chart 1: Asian Pay at all time low price
Source: CIMB chart as of 7 Dec 15
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