Thursday, June 04, 2009

Evergreen- a trading BUY

Evergreen is the largest medium density fibreboard (MDF) producer in Malaysia, with plan to be one of the top 12 producers of MDF in the world in terms of capacity. Its recently announced results for 1Q2009 ended 31/3/2009 shows promise that the worst could be over for Evergreen.



Evergreen has captured my interest because the stock appeared to have broken above its immediate medium-term downtrend line at RM0.70-72 as well as breaking above the 'Cup with handle' formation at RM0.74-75 level. The next resistance levels are RM0.95 & RM1.15.


Chart: Evergreen's weekly chart as at 4/6/2009 (Source: Quickcharts)

Based on the above technical breakout, Evergreen could be good for a trading BUY.
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5 comments:

  1. tehThursday, June 04, 2009 5:59:00 PM

    Hi Alex,
    What do you think about MALTON? any comment about it?

    ReplyDelete
  2. Alex LuFriday, June 05, 2009 9:03:00 AM

    Hi teh,

    Malton has made a bottom. We may see a repeat of the strong oversold rally in the first half 2007 when the stock rose from a low of 26 sen to a high of 75 sen (in 3 waves over 6 months). Currently, Malton has completed the 1st wave. A break above 36/37 sen could signal the start of the 2nd wave. Strong support for this stock is at 32 sen.

    Do check out its financial performance before buying into this stock.

    ReplyDelete
  3. AnonymousFriday, June 05, 2009 10:30:00 AM

    i have bought a few..

    ReplyDelete
  4. tehFriday, June 05, 2009 5:41:00 PM

    I bought a few also but today sold it already...but not sold at highestprice of today

    ReplyDelete
  5. MarcoSunday, December 27, 2009 6:53:00 PM

    Evergreen used to be a good dividend yield stock.

    Since it 'merged' with Hume, it has not been paying any dividend.

    Can you advise the dividend policy of Evergreen?

    ReplyDelete