Megaworld (MEG) has been a megastock midyear 2010 after it's meteoric rise from less than P1.2 to over P2.8 in just 6 months, talking about some 133% gain in just half a year span. Apparently, MEG has somewhat lost some steam in 2011, range trading between the P2-P2.4 levels before finally breaching P2 and head down to as low as P1.8.
Though MEG has exhibited some bearish characteristics, significant moohlah can still be earned from this stock and in fact, it may once again gain it's bullishness that it once had.
The chart below shows MEG's trading channel for the past 4 months.
What's significant about MEG's chart is its support. It's price bounced thrice (as of the moment) upon hitting its support indicating that support is strong and reliable enough. Should MEG exclusively follow such trend, an entry price of less than P1.8 is ideal, preferably 1.75 or lower. MEG's MACD indicator is also indicating some bullishness. MACD is a trend indicator signifying how strong (either bullish or bearish) a trend is.
Fundamentally, MEG has reported 70% increase in earnings to P15.75B in the first half of 2011 in comparison to the same period last year and it's net income increased by 131% to P5.16B including a P2B non-recurring gain from sale of AGI shares of stock. MEG's strong performance was backed by strong sales of residence projects such as Newport City, McKinley West, and McKinley Hill, as well as strong leasing income from it's BPO and retail portfolio.
With an entry price of P1.75 soon (hopefully) to be hit by September, MEG can rise to as high as 2.15 as far as the channel is concerned. We are looking at a conservative near 25% gain. Not really bad to swing trade.
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