Investing Technology Stock – Turn Green Packet to Greenbacks

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Apr 07 2007
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Green Packet Berhad (KLSE: GPACKET, stock-code 0082) which is one of the four companies awarded the WiMaX spectrum via its’ subsidiary Packet One Networks (Malaysia) Sdn Bhd triggered FinanceTwitter and MACD Buy Signal after closing Apr-6-2007.
RSI has climbed to about 66% and Stochastic shows a good sign of cross-over. It closed at RM 5.25 which is also the day’s high with good volume. This is one of the stocks in Malaysia which traded along the uptrend line with great “discipline”. A 1-year chart shows the resistance is strong at RM 5.80. The ratio of bulls againsts bears is 850 Bulls : zero Bears.
Green Packet is one of the quality companies which successfully put Malaysia map on the globe with its’ R&D in networking spanning in locations such as Cupertino, Kuala Lumpur and Shanghai. Probably one of its’ most success stories is the recognition of the clients such as China Telecommunications Corporation, Intel China, Lenovo Group (HKG: 0992), Panasonic and Maxis Communications Berhad (KLSE: MAXIS , stock-code 5051).
It attracted the former CEO of TMNet Sdn Bhd, Michael Lai to join Green Packet as the new CEO of its global marketing arm Green Packet International Sdn Bhd effective Jan 15 2007. Being one of the most successful Mesdaq-listed companies, Jeddah-based Saudi Economic and Development Co (SEDCO) agreed to buy 10% stake for about RM 91 million at RM 2.47 per-share. The entry of SEDCO is said to create the springboard for Green Packet to penetrate Middle East wireless networking and telecommunications market.
Green Packet solutions such as SONaccess, SONbuddy, and SONmetro are said to be well-received by ICT-hungry countries such as Saudi Arabia and beyond. Middle East on average are paying RM430 and RM550 a month for only 256 kilobytes per second of broadband connectivity compare to RM40 in Malaysia.
With good management and leader such as Chan Cheong Puan it’s not surprising that Green Packet Berhad become the most profitable and has the largest market capitalisation of more than RM 1.6 billion amongst companies listed on Malaysia’s technology market. Convinced of the opportunities of wireless networking technology convergence, Mr Puan founded Green Packet in the Silicon Valley of California in 1999 to boldly forge ahead in the wireless world to develop products to provide a seamless and universal platform for the delivery of user-centric multimedia communication and services regardless of the nature and availability of the backbone infrastructure.
Green Packet Berhad, has posted a pre-tax profit of RM17.92 million on the back of a revenue of RM43.13 million for the fourth quarter ended 31 December 2006. Net profit after tax and minority interest was 43.61% higher at RM15.33 million, translating into an EPS (earnings per share) of 3.67 sen per 10 sen share. For the full year ended 31 December 2006, pre-tax profit surged 84.92% to RM58.73 million. This came on the back of a 151.23% jump in revenue to RM98.93 million. The full year earnings are the highest recorded to date. Together with the 10.53 sen EPS (earnings per share) posted in the first nine months of the year, the latest 3.67 sen in Q4 adds up to 14.20 sen per 10 sen share for the financial year ended 31 December 2006.
According to data compiled by Bloomberg, analysts expect Green Packet’s net profit to rise to about RM79 million and RM159 million in 2007 and 2008 respectively. The firm had some RM300 million cash in hand as of the end of 2006. Foreign investors particularly like Green Packet due to its’ extensive R&D, global presence and excellent management.
Of the four companies awarded the much awaited WiMAX licenses, perhaps only Green Packet can delivers and deploy the technology although I still miss DIGI.com Berhad (KLSE: DIGI , stock-code 6947) who lost twice in its’ bid for 3G and WiMax in Malaysia. You can’t find another listed company in Mesdaq which can rival this stock.
# TIP: If you’ve appetite for technology stock in Malaysia, consider investing in Green Packet stock. Wait till it fell just above the uptrend-line. This Green Packet might turns your Ringgit into Greenbacks.
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