Wednesday, February 15, 2012

Hapseng broke above the horizontal resistance at RM1.70

Hapseng broke above its horizontal resistance at RM1.70 today. It gained 6 sen to close at RM1.74. Its next resistance would be at RM1.85. The stock has been capped at this level for the past 5 weeks. The breakout was probably prompted by the release of a fairly good set of financial statement which shows that Hap Seng made an EPS of 18.85 sen for FYE31/12/2011. At this earning, Hapseng is now trading at a PE of 9.2 times. At that PE multiple, Hapseng is deemed inexpensive for a diversified conglomerate in interest in plantations, property investment and development, credit financing, trading of fertilizers and automotive, as well as building materials and stone quarries.

Based on techncial breakout & attractive valuation, Hapseng could be a good trading BUY.


Chart: Hapseng's weekly chart as at Feb 15, 2012 (Source: Quickcharts)
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5 comments:

  1. Ethan LeeThursday, February 16, 2012 7:16:00 AM

    Hi Alex,

    Thank you for your analysis for Sridge (0129) before.

    May I know again what is the next resistance price and support price for Sridge. currently Sridge at RM0.315.

    Thanks in advance.

    ReplyDelete
  2. 富升Friday, February 17, 2012 10:49:00 PM

    Hapseng I think this is good stock to hold.

    Technically good, not sure fundamental good or not.

    ReplyDelete
  3. Alex LuMonday, February 20, 2012 2:19:00 PM

    Hi Ethan Lee

    Sridge's immediate support & resistance are at RM0.30 7 RM0.40, respectively.

    ReplyDelete
  4. LTTuesday, February 28, 2012 1:05:00 AM

    Hi Alex,
    Today HAPSENG drop further to 1.64 after ex-dividen. Do you think it's uptrend is reversing? What is the support level?

    Thanks..LT

    ReplyDelete
  5. Alex LuWednesday, February 29, 2012 8:55:00 AM

    hi LT

    After paying out a dividend of 4.7 sen, HAPSENG price dropped back. The drop is more than the amount paid out. You may attribute that to the market sentiment.

    The uptrend line support is at RM1.60-1.61. The overhead strong horizontal resistance is at RM1.65 (previously, RM1.70). The technical damage from the ongoing correction is not terribly bad provided it does not violate the RM1.60 support.

    ReplyDelete