Wednesday, February 22, 2012

Harison- hit by a surprising legal suit

Harison announced that it was sued by the Custom for Import Duty, Excise Duty & Sales Tax totaling RM91.75 million (here). This is a piece of shocking news, both in term of the quantum involved as well as the company involved. Harison is a very well-run trading company which few would expect to be hit by something like this. In any event, the chart shows that the stock has broken below the strong horizontal support of RM3.40. Its next support will be the psychological RM3.00 level & then the next horizontal support at RM2.85.

This bill of RM91.75 million is equivalent to 32% of Harison's shareholders' fund of RM286 million as at 30/9/2011.

Chart: Harison's weekly chart as at Feb 22, 2012_12.00pm (Source: quickcharts)


Sky said...

will buy at 2.50

ryan said...

I somehow believe there are conspiracy between Harrison, Kastam Diraja Malaysia and Nazri.

cykoay said...

I bought into this stock due to its strong financial fundamental and its good dividend payout. But until now, there is no update on its legal suit, as a minority shareholder, how am going to gauge its impact to its future of this company? How can i ask for help to get response from company management on its legal suit update?