Hiap Teck Ventures Bhd ('Hiaptek') is involved in the manufacture, rental, and distribution of steel pipes, hollow sections, scaffolding equipment and accessories, and other steel products.
For FY2013, it reported a net profit of RM24.3 million in a revenue of RM1.11 billion. This is an improvement over last year result, where its net profit was RM16.6 million while revenue was RM1.12 billion. Its earning inched up from 3.1 sen in FY2012 to 3.4 sen in FY2013. For more, go here.
In May, the stock has broken above its long-term downtrend line and it has since been moving sideway. In the past 2-3 days, it was attempting to break above its recent high of RM0.66. The same movement was noted for the warrant but it has yet to even test its recent high of RM0.25. If the warrant can breach the RM0.25 mark, this stock and the warrant could begin its upleg.
Based on technical consideration, Hiaptek could be a good stock for trading BUY or even a medium-term investment if these securities can stay above their breakout level.
Chart 1: Hiapteck's weekly chart as at Oct 23, 2013_3.00pm (Source: Quickcharts)
Chart 2: Hiapteck-WA's weekly chart as at Oct 23, 2013_3.00pm (Source: Quickcharts)
As at 9.40 am, Hiapteck & Hiaptek-WA were trading at RM0.66 & RM0.255, respectively.
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, Hiaptek.
4 comments:
Hi Alex
Suria just broke out from its cup and handle pattern?
Hi JY,
Suria broke above the horizontal line at RM1.91-1.92 as well as the psychological RM2.00 mark. It is now pressing against the RM2.05 resistance.
I am not sure whether we can say that it has broken above the cup with handle pattern as it has yet to revisit the January 2011 high of RM2.25.
Thanks Alex.
Seems like the chart you use has been adjusted for dividend hence your Jan'11 high is 2.25.
My chart is not dividend adjusted hence my high is 2.42 and I can draw a nice cup and handle connecting peak in Feb'12.
In your opinion, should we be using dividend or non-dividend adjusted when drawing a chart?
Appreciate your feedback as I really learn alot from you.
Hi JY,
I feel that if the dividend is significant, the data should be adjusted. Why? Because the investors would mentally adjust for huge dividend in the same way that we adjust for bonus issue.
If the dividend is insignificant, we do not bother to make mental adjustment in the same way that we don't bother to adjust for a Rights Issue where the subscription price is nearly similar to the market price.
However, we do not have the luxury of choosing one or the other when we come to price data: They are either adjusted for dividend or not adjusted for dividend. Tradesignum charts are not adjusted for dividend while Quickcharts are adjusted for dividend.
Having studied charts for so long, I find that charting to be an imprecise art. There is a fair bit of gut feeling that goes into charting. Since I allowed for this element of subjectivity into my studies, surely a bit of uncertainty brought on by adjustment or non-adjustment for dividend would be small matter. As such, I can live with either types of chart.
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