Lionind-4235: In Downtrend.
Chart 1: Lionind-4235 (22/01/2010～19/05/2010)
As shown on Chart 1, price of Lionind formed a T1 downtrend, for about 1 and a half month. Despite rebounding strongly from RM1.53 support, it has failed to break above the T1 downtrend line, and well as the 14, 21, 31 EMA dynamic resistance.
As of 19/05/2010, price of Lionind is testing the RM1.53 support. If price should rebound from this level, it would be a technical rebound, not yet a reversal. If price should failed to break above the T1 line again, and later breaking below RM1.53, it would be making a 5 months new low, with technical outlook remains bearish biased.
Technically, price has to break above the T1 line successfully to break away from its downtrend. However, after breaking above the T1 line, it does not mean that it would be forming an uptrend immediately, for it could be only sideways and consolidate. In order to rally, the rising of price must be accompanied by strong volume. Nevertheless, next support for Lionind is seen at RM1.20~RM1.21 level.
| 4 Q Rolling PER | 0 times | Dividend Yield | 0.62% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 30/06/2009 | 1 sen | 0.80% | -6.06% |
| 30/06/2008 | 1 sen | 0.38% | 12.43% |
| 30/06/2007 | 1 sen | 0.57% | 4.36% |
| 30/06/2006 | 0.5 sen | 0.52% | -0.29% |
| 30/06/2005 | 1 sen | 0.81% | 8.26% |
Table 1: Lionind-4235, yearly dividend, dividend yield, and net profit ratio.
Kinstel-5060: In Downtrend.
Chart 2: Kinstel-5060 (22/01/2010～19/05/2010)
Together with Lionind, Kinstel also formed a downtrend, which shown on Chart 2. Meanwhile, the 14, 21, 31 EMA is also serving as a dynamic resistance for Kinstel. With price of Kinstel below the T1 line as well as the 14, 21, 31 EMA, the technical outlook is expected to be weak.
Since price of Kinstel has broken below RM0.93 level and marked a 5 months new low, the next support is seen at RM0.865 level, which is the rally point in December, 2009. If price should break below this level, more downside biased movement is expected, and the next support level will be at RM0.785.
Based on the current conditions, chances of a rally for Kinstel is slim, because there are no signs of any rebound or reversal yet. In short, price has to break above the T1 line with strong volume, then only there is a chance to break away from the downtrend.
| 4 Q Rolling PER | 47.46 times | Dividend Yield | 1.07% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 1.0 sen | 1.01% | 0.95% |
| 31/12/2008 | 1.7 sen | 4.00% | 1.52% |
| 31/12/2007 | 1.7 sen | 1.27% | 6.38% |
| 31/12/2006 | 7.5 sen | 4.60% | 35.60% |
| 31/12/2005 | 5.0 sen | 5.49% | 3.57% |
Table: Kinstel-5060, yearly dividend, dividend yield, and net profit ratio.
Huaan-2739: In downtrend channel.
Chart 3:Huaan-2739 (25/11/2009～19/05/2010)
As shown on chart 3, price of Huaan formed a downtrend channel, for quiet some time, and until now, it has not broken above the downtrend channel, with T1 line being the dynamic resistance while the T2 line being the dynamic support.
Generally, when price hit the T2 line, there is a chance of a technical rebound, but still, a technical rebound in a downtrend is still a downtrend.
If price should rebound from an uptrend correction, the rebound would most likely be a continuation of an uptrend, or making new high. However, a technical rebound in a downtrend is merely a rebound if it should failed to break above the dynamic resistance, and therefore, if one should catch a rebound, he or she is most likely to buy into a downtrend.
In short, provided that price of Huaan is still below the 14, 21, 31 EMA, or the T1 line, the technical outlook shall remains weak, until a valid break out above the T1 or 14, 21, 31 EMA, with strong volume.
| 4 Q Rolling PER | 0 Times | Dividend Yield | 0% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2009 | 0 sen | 0% | -1.61% |
| 31/12/2008 | 0 sen | 0% | 0.40% |
| 31/12/2007 | 0 sen | 0% | 14.95% |
| 30/06/2006 | 0 sen | 0% | -37.95% |
| 30/06/2005 | 0 sen | 0% | -33.31% |
Table 3:Huaan-2739, yearly dividend, dividend yield, net profit ratio.
Conclusion:
With the overall market is getting weaker, steels counters are also affected, thus investors should take extra caution when picking any stocks, and avoid buying into a downtrend, but instead take opportunity to 'get out' when there is a technical rebound.
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