AMEDIA: The next upleg is underway

Stock to
watch:
AMEDIA
(BUY)
AMEDIA: The next upleg is underway
 AMEDIA (IPO price: RM0.23), listed on the Ace Market on 11
Jan 2011, is the market leader in the digital out-of-home (DOOH)
media and advertising industry. The group’s existing transit TV
operations via LCD screens in all RapidKL and Causeway link
buses provide the media platform for advertising. Growth in
transit TV opportunities in Malaysia, particularly in the Klang
Valley, will be driven by the government’s initiative to beef up
public transport and increase public transport usage.
 Based on Bloomberg consensus, MEDIA is trading at 2.7-5.3x
P/Es for FY11-12 against average media sector of 12-13x. It is
also providing investors with an alternative exposure to growing
media segments apart from free-to-air (FTA) TV and newspaper.
 Since hitting 52-wk high of RM0.425 on 11 Jan, AMEDIA was
consolidating ranged-bound within the RM0.21 to RM0.34 band
(except the intraday spike to RM0.39 on 21 Apr).
 Yesterday’s closing at RM0.29 (above the 40-day SMA and 50-
day SMA) as well as the gradual upticks in the momentum and
trend indicators are suggesting potential upside targets towards
RM0.315 (50%FR) and RM0.34 (38.2%). Once the RM0.34 is
taken out, follow through upswing should lift the stock towards
RM0.37-0.39 zones. Cut loss below RM0.26.