Digi’s results this quarter were good as usual, trouncing what they made last year. As you can see from the company scorecard they score very highly indeed - the only negatives being growing receivables and less than stellar operating efficiency (which are still good by any company standards - just not as good as last years). If you compare it to Maxis’s scoresheet you can see that it is easily more efficient and profitable. That is why it is being rewarded a PE of over 25 compared to Maxis’s 17, even though Maxis is a much bigger creature. However neither company is cheap. In fact they are fully valued, which is why I am going to sell my DIGI shares tomorrow and wait for valuations to come down a little bit.
Looking at the charts, there’s also a double top which is the traditional signal for a reversal. Also the two previous days have resulted in “hanging men” formations which is depicting a struggle between the bulls and the bears (especially when supported by high volumes - which this is!) and sure enough if you look at the RSIs, there is a negative divergence which is also showing weakness.
Hey there,
I have been looking for the scorecards for Maxis and Digi but I can’t seem to find it. Where did you obtain the information from? Hope you can help me out.
Thanks.
Fem - go to the homepage and look on the right hand column under “asides”. You will find the scorecards there.
Thanks!