Showing posts with label Investment Strategy Portfolio for Haio. Show all posts
Showing posts with label Investment Strategy Portfolio for Haio. Show all posts

Thursday, May 20, 2010

Case Studies Haio, Unisem, MPHB.

Stock markets performance around the world has been globalized. For example, the 2008 Financial Tsunami was originated from the U.S, and spread throughout the world. The current debt worries in the European countries would do the same as well, if the European markets enter into a bear run. Therefore, it is almost impossible for the Malaysian market to be exempted from this globalized movement. This week, we shall continue to stay some Case Studies to see how the broad market is affecting their performance.

Revision of last week's Case Study: Haio-7668: In Downtrend.


Chart 1: Haio-7668 (15/01/2010~12/05/2010)

As shown on chart 1, after forming a lower-high, price of Haio fell below the 14, 21, 31 EMA, thus the 14, 21, 31 EMA is now serving as the dynamic resistance for Haio, suggesting that Haio is now in downtrend.

As indicated by A, after rebounded from RM3.80~RM3.85 support, price of Haio failed to break above the 14, 21, 31 EMA, thus suggesting that the downtrend remains intact. Technically, price has to break above the dynamic resistance with strong volume, in order to break away from the downtrend, or else, the technical outlook shall remains bearish biased.

Therefore, if price should continue resisted by the 14, 21, 31 EMA and break below RM3.80, it would be making a 3 months new low, thus a signal suggesting to cut loss, because the next support is seen at RM3.46 level. Resistance for Haio is at RM 4.36~RM4.40.

4Q Rolling PER

15.7 times

Dividend Yield

10.29%

Dividend

Dividend Yield

Net Profit Ratio

30/04/2009

42 sen

11.11%

11.96%

30/04/2008

40 sen

11.17%

12.97%

30/04/2007

18 sen

8.11%

11.29%

30/04/2006

8 sen

6.35%

7.06%

30/04/2005

6 sen

6.00%

3.95%

Table 1: Haio-7668, yearly dividend, dividend yield, and net profit ratio.

Unisem-5005: Short term uptrend ended, but the mid-long term remains intact.

Chart 2: Unisem-5005 (15/01/2010~12/05/2010)

As shown on Chart 2, price of Unisem fell below the T1 uptrend line, suggesting that the T1 uptrend line has ended, and therefore, for those investors who has bought this share based on the T1 uptrend line, this is a signal to take profit or to cut loss. However, after breaking below T1, price of Unisem is finding its support at the T2 uptrend line, which is a longer-term uptrend line. Therefore, this shows that the shorter uptrend has ended, while the longer uptrend remains intact.

Despite the longer term uptrend remains intact, investors has to be clear of their own entry point or position, and must honor their own trading plan. When price should break below T1 uptrend, they should execute the cut-loss plan or at least reducing their position partially, and wait to see if price should rebound from the T2 line for the rest of their holding.

It is important to know that the risk of investors who bought based on the T1 line and T2 line is totally different. For example, if a person who entered with the T1 line signal, but refuse to cut-loss when price breaks below the T1 line, because he thinks that the T2 line is still intact, and he is suffering losses, while the investor who bought based on the T2 line signal is still in profit. Therefore, the risk profile of investor varies.

One of the most dangerous mind set is refusing to cut-loss and stubbornly holding in losing position(s). For example, a person who entered a position was initially wanted to take advantage of an uptrend, and later price breaks below the uptrend, but this person refuse to cut-loss, but trying to look for excuses or reasons to convince himself to be a 'long term investor', be it good earnings, dividend, contracts awarded, or anything that he could think of. But in reality, this person only want to break even, and if he was lucky, and price returned to his break-even point, he would sell and clear his position, and all the above reasons such as dividend, contracts, and good earnings would seem irrelevant anymore. This is a typical double standard of a loser, and the biggest account killer.

Nevertheless, if price of Unisem should also break below the T2 uptrend line, it means that longer term uptrend is also weakening, thus investors must honor their own trading plan. There is no buy signal yet for Unisem until a valid break out above the 14, 21, 31 EMA, with strong volume.

4 Q Rolling PER

12.22 times

Dividend Yield

0.81%

Dividend

Dividend Yield

Net Profit Ratio

31/12/2009

2.50 sen

1.14%

5.97%

31/12/2008

2.50 sen

3.57%

1.61%

31/12/2007

10.00 sen

6.06%

12.25%

31/12/2006

10.00 sen

6.06%

10.38%

31/12/2005

8.00 sen

5.76%

3.92%

Table 2: Unisem-5005, yearly dividend, dividend yield, and net profit ratio.

MPHB-3859: Dowtrend.


Chart 3: MPHB-3859 (15/01/2010~12/05/2010)

As shown on chart 3, price of MPHB is currently staying below the falling T1 downtrend line, suggesting that the downtrend is still in place. Despite rebounding from RM2.00, price of MPHB has failed to break above the T1. Therefore, the rebound was merely a technical rebound, not a reversal. Meanwhile, while the downtrend is still intact, volume traded for MPHB is still low, thus implying the buying interest is relatively insufficient to off set the selling pressure of breaking even.

Technically, provided that the T1 line is still in place, the technical outlook for MPHB shall remains weak, until a valid break out above the T1 line. If price should break above the T1 line, it would break away from its downtrend, and possibly consolidate. As for a reversal signal, price has to break above the T1 line with strong volume. Current support for MPHB is at RM1.98~RM2.00 while the resistance is at RM2.17~RM2.18.

(4 Q Rolling PER

6.63 times

Dividend Yield

4.25%

Dividend

Dividend Yield

Net Profit Ratio

31/12/2009

9.00 sen

4.66%

10.15%

31/12/2008

10.00 sen

9.26%

4.31%

31/12/2007

11.00 sen

4.74%

11.71%

31/12/2006

0 sen

0%

36.54%

31/12/2005

0 sen

0%

-69.12%

Table 3: MPHB-3859, yearly dividend, dividend yield, and net profit ratio.

Conclusion:
Generally, a stock or a market will take some time to form a reversal, from bullish to bearish, or vice-versa. There are signals and characteristics of a reversal, which is higher-low or lower-highs, followed by new high or new low. Therefore, by understanding these characteristics, one would not be buying too early nor exiting too late.






Copyright © 2009 Straits Index (M) Sdn BhdImportant Disclaimer:These content provided by Straits Index (M) Sdn Bhd is solely for education and information purposes only, and do not suggest any investment advices. All information displayed are believed to be accurate and reliable. Interpretation of the data or analysis is at the reader's own risk. Straits Index (M) Sdn Bhd reserves the rights but obligations to update, admen, or even terminate the materials. 重要声明:以上的内容由海峡指数(马)私人有限公司提供,纯粹是教育性质, 并不是任何的投资忠告。所有资料显示认为是准确和可靠的。对数据或分析的解释和用途是在于用户自己的风险。海峡指数(马)有限公司持有保留及义务更新,甚 至终止材料的权利。

Case Studies Haio, BJcorp, MRCB

When the broad market is falling, there will be more counters falling than counters rising, and therefore, the probability of losing money is higher. However, it does not necessary means that whenever a broad market is having its correction, it would be a signal to take profit. Nevertheless, investors should stay cautious, and watch if the correction of the broad market would damage the existing uptrend on your portfolio. If the uptrend of your stocks remains intact, it is a good idea to hold on to it, but if price should break below an uptrend, it is a good idea to reduce position. This week, we would like to take a look at some counters which is turning weaker from their previous uptrend, and study the process of turning weaker from a stronger trend.

Haio-7668: Forming downtrend.


Chart 1:Haio-7668 (08/01/2010~05/05/2010)

As indicated by A and A', price of Haio formed a Lower-high, and later consolidated above the RM4.38 level. Despite being supported by the RM4.38 level, the consolidation was bearish biased, for the lower-high implies a weakening movement.

As indicated by B, price of Haio broke below RM4.38 level, suggesting that those who had bought and hold their position above RM4.38 are now making losses, thus the idea of breaking even is getting stronger. Therefore, there will be memory of breaking even at RM4.38, A' and A1 level.

Nevertheless, when price broke below the RM4.38 level, the 14, 21, 31 EMA was also falling while serving as a dynamic resistance. In other words, the technical outlook for Haio shall remain bearish biased until price should successful break above the 14, 21, 31 EMA with strong volume.

4 Q Rolling PER

15.7 times

Dividend Yield

10.29%

Dividend

Dividend Yield

Net Profit Ratio

30/04/2009

42 sen

11.11%

11.96%

30/04/2008

40 sen

11.17%

12.97%

30/04/2007

18 sen

8.11%

11.29%

30/04/2006

8 sen

6.35%

7.06%

30/04/2005

6 sen

6.00%

3.95%

Table 1:Haio-7668, yearly dividend, dividend yield, and net profit ratio.

BJCORP-3395]:Forming Downtrend.

Chart 2: BJCORP-3395 (08/01/2010~05/05/2010)

As shown on chart 2, price of JBCorp retreated after reaching its height of RM1.87 level, but managed to be supported by the 14, 21, 31 EMA and rebounded from there. However, when price rebound from the 14, 21, 31 EMA, it has failed to return to its previous height, and formed a Lower-high, which forms the L1 line.

As indicated by A, after forming the L1 line, price of BJCorp also break below the 14, 21, 31 EMA, confirming the formation of a downtrend while the 14, 21, 31 EMA as well as the L1 line are both serving as dynamic resistance. In short, the technical outlook for BJCorp is now bearish biased.

If price were to return to its uptrend, it has to break above these dynamic resistance with strong volume, or else, any rebound below the dynamic resistance would only be counted as technical rebound, not a reversal.

Leading PER

-75.49 times

Dividend Yield

2.18%

Dividend

Dividend Yield

Net Profit Ratio

30/04/2009

3.35 sen

3.99%

-0.83%

30/04/2008

9.00 sen

8.11%

17.20%

30/04/2007

0 sen

0%

5.72%

30/04/2006

0 sen

0%

-24.33%

30/04/2005

0 sen

0%

-3.03%

Table 2: BJCORP-3395, yearly dividend, dividend yield, net profit ratio.

Review of last week's Case Study:MRCB-1651 :T1 downtrend line remains intact.

Chart 3: MRCB-1651 (08/01/2010~05/05/2010)

As shown on chart 3, the T1 downtrend line is still intact, suggesting that price of MRCB is still trending down. As indicated by A, price of MRCB rebounded and tested the 14, 21, 31 EMA as well as the T1 line last week, but failed to break above these dynamic resistance. This has once again, proven that the technical outlook for MRCB is on the negative side.

Nevertheless, technically, provided price should remain resisted by these dynamic resistance, the bearish biased outlook is expected to carry on. If price should rebound but failed to break above these resistance line, the rebound would only be technical rebound, not a reversal. A valid break out above the T1 line has to be accompanied by strong volume, or else, the downtrend remains intact.

4 Q Rolling PER

39.79 times

Dividend Yield

0.66%

Dividend

Dividend Yield

Net Profit Ratio

31/12/2009

1 sen

0.73%

3.76%

31/12/2008

0 sen

0%

-7.18%

31/12/2007

0 sen

0%

4.51%

31/12/2006

0 sen

0%

6.20%

31/12/2005

0 sen

0%

4.25%

Table 3: MRCB-1651, yearly dividend, dividend yield, and net profit ratio.

Conclusion:
Many investors had complaint that when the market turns downside, they don't have enough time to get out quickly. In fact, with the exception of Limit down, all downtrend needs time to form, and during the process of changing between the end of an uptrend to the beginning of a downtrend, there are specific characteristics, which is a very important aspect for investors to find out. With the skill in spotting these characteristics, there should be enough time for one to react. However, to pick up such skills, it takes years, and therefore, there are no short cut in this learning curve.







Copyright © 2009 Straits Index (M) Sdn BhdImportant Disclaimer:These content provided by Straits Index (M) Sdn Bhd is solely for education and information purposes only, and do not suggest any investment advices. All information displayed are believed to be accurate and reliable. Interpretation of the data or analysis is at the reader's own risk. Straits Index (M) Sdn Bhd reserves the rights but obligations to update, admen, or even terminate the materials. 重要声明:以上的内容由海峡指数(马)私人有限公司提供,纯粹是教育性质, 并不是任何的投资忠告。所有资料显示认为是准确和可靠的。对数据或分析的解释和用途是在于用户自己的风险。海峡指数(马)有限公司持有保留及义务更新,甚 至终止材料的权利。