- lower production output due to the closure of the Ijok, Selangor plant while the output from its new Vietnam plant has yet to pick up sufficiently as commercial production has only commenced in June 2007;
- higher operating losses from its Thailand plant; and
- higher raw material cost & transport expenses.
Latitud has rebounded off its strong horizontal support of RM1.20. While the poor financial performance in the last quarter may lead to short-term weakness for this stock, the past few weeks' share price movement could be indicating that Latitud's share price might have bottomed. Its recovery would have to wait, for now.
Chart: Latitud's daily chart as at November 23 (courtesy of Quickcharts)
I still believe that Latitud is still a good long-term buy at prices between RM1.20-1.30.