MM2 Asia Ltd (SGX:1B0) HEFFX Highlights

MM2 Asia Ltd (SGX:1B0) HEFFX Highlights

MM2 Asia Ltd (SGX:1B0) HEFFX Highlights

  • Fast-moving Singaporean mini-conglomerate MM2 has agreed on terms of purchase for the Cathay Cineplexes cinema chain. The move comes only months after MM2’s failed bid to buy rival Singaporean circuit Golden Village.
  • Cathay currently operates eight multiplexes in Singapore, including one that was opened in September at Parkway Parade. The price reflects a multiple of 13.8 times Cathay’s earnings. Cathay is 51% owned by Meileen Choo, and 49% held by Equus Holdings.
  • The acquisition will mean that MM2 stretches from film and TV production through to cinema exhibition in Singapore. It previously bought Cathay’s cinemas in Malaysia.
  • MM2 previously agreed to a deal with Australia’s Village Roadshow to buy its 50% stake in Golden Village, Singapore’s leading cinema chain.
  • But the deal was blocked by Orange Sky Golden Harvest, Golden Village’s joint owner. Orange Sky and Village Roadshow recently settled on terms for Orange Sky to buy the stake instead.

mm2 Asia Ltd. is an investment holding company. The Company is a producer of films, television and online content. Its segments include Core business, Post-production and Cinema operation. The Core business segment is engaged in production and distribution of motion picture, video and television program and sponsorship, and comprises income related to sale of rights, producer fee income and consultancy fee income; income related to the box office receipts of the movies released and exploitation of the script and sequel rights of the movie via licensing agreements, and income related to sponsorships associated with the production of films. The Post-production segment comprises three dimensional (3D) stereoscopic animation, 3D animation and visual effects for films and commercials, which are related to motion picture, video and television program post-production activities. The Cinema operation segment includes sales of cinema ticket and concession, hall renting and screen advertising.

Overall, the bias in prices is: Upwards.

Short term: Prices are stalling.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 0.53.

The projected upper bound is: 0.60.

The projected lower bound is: 0.53.

The projected closing price is: 0.57.

MM2 ASIA closed down -0.015 at 0.565. Volume was 203% above average (trending) and Bollinger Bands were 67% wider than normal.

Open         High         Low         Close       Volume
0.580        0.580       0.560       0.565       16,893,300

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period         50-period      200-period
Close:                       0.56                 0.51                   0.52
Volatility:                39                     45                      47
Volume:                   8,779,860       4,356,888        4,899,698

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

MM2 ASIA is currently 8.6% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into MM2A.SI (mildly bullish). Our trend forecasting oscillators are currently bullish on MM2A.SI and have had this outlook for the last 10 periods.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 75.0000. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 61.60. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 59 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 67. This is not a topping or bottoming area. The last signal was a sell 0 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 12 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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