UOL operates property development, property investment and hotel operations. It is majorly owned by the Wee family of UOB.
Since 2009, UOL's P/B valuation had been trading within the range of 0.5x to 0.8x. It last hit 0.5x in Nov 2020 and is currently trading at 0.67x P/B valuation. Investors wanting an exposure to the property sector can consider UOL.
Based on current Book Value level, a P/B of 0.8x will imply that UOL has the potential of reaching $9.50. Factoring the historical growth rate of 5.65% on its book value, the target will then be raised to $10. The support is at $6 based on 0.5x P/B valuation.
On its daily chart, we are seeing some momentum in the price move, with KST indicator crossing up. Short-term support of $7.20 can be set as cut-loss level for traders who are unwilling to average in again should the momentum fail to build up and the valuation drop back to 0.5x level.
Disclaimer:
This is an opinion piece. Please always do your own due diligence on the company's fundamentals & assess if the Fundamental / Technical analysis opinions are applicable to your trading/investing needs.
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