TienWah may have broken above its strong horizontal resistance at RM2.00-2.05.
Chart 1: TienWah's monthly chart as at Mar 1, 2010 (Source: Tradesignum)
Recent Financial Results
For FYE31/12/2009, TienWah's net profit declined by 17.4% from RM18.7 million to RM15.5 million. Turnover had however increased by 77% from RM186 million to RM329 million. The decline in net profit was due to the negative impact of a surge in volume of new products from a major customer resulting in the need to outsource a number of jobs. This problem is expected to be alleviated in FY2010 with the purchase of an additional printing press.
Table: TienWah's last 8 quarterly results
Chart 2: TienWah's last 12 quarterly results
Conclusion
TienWah should have benefited handsomely from the strong growth in the top-line in the past 8 quarters, if it has sufficient production capacity. This problem should be alleviated in FY2010, which should result in better bottom-line. Investors maybe positioning themselves in this stock ahead for an upswing in its bottom-line. Based on technical breakout, TienWah could be a good trading BUY or even a good stock for long-term investment.
Hi Alex,
ReplyDeleteI have been follwing your blog for the passed few months. I would appreciate if you could give a comment on how is faber chart looks like at the moment as the vol is low and the price doesn't move much, thanks.
Hi KPLU,
ReplyDeleteOver the past 7-8 days, Faber has been tracing out a "descending triangle" pattern, with downside support at RM1.97-98 & upside resistance at RM2.02. However, it is now approaching the apex of that triangle and without a breakout to the upside or downside, the share price will likely to exit at the apex & thereafter to trade sideway.
Hi Alex,
ReplyDeleteMany thanks for your comments.
Hi Alex ,
ReplyDeleteHow about the share QL 7084 ? any comment ?
Hi Alex ,
ReplyDeleteWhat happen to the Allianz bank share,can we buy ?
dear alex,
ReplyDeleteRead today newspaper on comment on KNM.New regulations by SC. Seems not optimistic for uptrend. Price now about .75. My average price about .90. Seek yr opinion. Thanks a lot.
Hi phkoay,
ReplyDeleteBased on my study of the weekly chart, I think QL is likely to move sideway (between RM3.20-50) for a while.
Hi phkoay,
ReplyDeleteAllianz is an insurance company, offering general & life insurance coverage. It has a decent rally from RM4.00 in early Jan to a high of RM5.50 on March 10 & 11. It may pullback to the 50 or 100-day SMA line (or, between RM4.75 & RM4.93). It also has good horizontal support at RM4.95-5.00 level. This is a good insurance company, which I had posted on earlier.
Hi Layman,
ReplyDeleteKNM has been trading between RM0.70 & RM0.82 for the past 6-7 months. So, I believe the stock may still find some support despite the current price weakness. The latter came about after the announcement today that BlueFire Capital Group Ltd is in continued discussion with KNM's management to conclude the earlier deal for the acquisition of the assets & businesses of KNM. This came after the expiry of the dateline for the due diligence to be carried out by the buyer, BlueFire Capital Group Ltd.
I have the feeling that the other partners in BlueFire Capital Group Ltd, i.e. GS Capital Partners VI Fund LP, a private equity fund of the Goldman Sachs Group Inc, and Mettiz Capital Ltd may not be satisfied with the due diligence or the purchase price. The deal may be re-negotiated. It may not be all negative because the re-negotiated purchase price may still be higher than the current market of KNM. The earlier announced purchase price (equivalent to RM0.90 per KNM share) was significantly higher than the market price of KNM.
If you have the stock, you may want to sell some if the stock rebound up to RM0.80-82.
Dear alex,
ReplyDeleteThanks for your view. Appreciate a lot.