Both 4D operators, BTOTO and Magnum have fallen significantly since 2013. In specific, BTOTO (-43%) has fallen relatively more than Magnum (-32%). Recently, we saw re-bound in the share price of both counters (relative outperformance by Magnum). BTOTO is last traded at MYR2.37 whilst Magnum’s last closing share price is MYR2.46.
The following chart shows :
- Blue line: historical weekly share price ratio of BTOTO’s share price divided by Magnum’s share price
- Yellow line: 200 Simple Moving Average of historical weekly share price ratio
Without any reference to the latest fundamentals of both companies, it appears that the Magnum’s share price has performed relatively better than BTOTO. Current share price ratio (BTOTO / Magnum) of 0.965x is at historical low since mid 2013 (0.865x). Assuming the share price ratio normalises at around 1.25x (around 200MA), we may potentially see BTOTO trading at MYR3.08 per share (if Magnum’s share price is maintained at MYR2.47).
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