HIL- getting ready for next upleg?

On its website, you will see this bold statement:

With over 30 years experience in the plastic injection industry, Hil Industries Berhad (HIL) enjoys the reputation of being a leading custom injection moulder of engineering plastics in South East Asia. 

A check on its financials would immediately give you a different impression. For FY2012, HIL reported a net loss after tax of RM3.1 million on a revenue of RM80 million. The previous year, it made a small net profit of RM483k on a revenue of RM106 million. For 9-month ended 30/9/2013, HIL reported a net profit of RM676k on a revenue of RM58 million.

Notwithstanding the unimpressive financial performance, HIL's technical outlook - which has turned mildly bullish in June last year after the upside breakout of the long-term downtrend line (RR) - may be poised to be even more bullish. The stock has broken above the horizontal line at RM0.50 today. This could be the start of it next upleg. The next resistance will be at RM0.62.

Based on technical breakout only, the stock looks like a trading BUY.


Chart: HIL's weekly chart as at Jan 22, 2014 (Source: Tradesignum)
Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, HIL.