The Edge opined that downside risk for Muhibbah will be limited as the write-off of 245 million is a one-off provision in case APH should fail to pay the debt. However, the large order books of 2.61 billion and high earning visibility for the next two year will enable it to recover fast. On top of this, a successful rescue of APH will be a big plus to the stock.
Based on charts, price has been lingering in tight range for quite a long time and seems 0.885 is a good support. RSI shows that selling pressure has diminished and accumulation is in progress. Long term investor should start to collect this stock if he believes in The Edge's analysis.
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