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Low volume counter... TA people should avoid.
Plus, I think its heading for a slow downtrend.
Plus, I think its heading for a slow downtrend.
Anyone can advise on Huan Hsin Result ? Any comment whether is good or bad. Kind of interested in this counter.......
Extracted from my blog http://kelongstocks.blogspot.com
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[B]Technical Analysis[/B]
Chart shows Huan Hsin just breaking out from a 1 year downtrend resistance line (thick blue downward sloping line) on high volumes, breaching the EMA 100 resistance in the process. Prices had fluctuated within a trading range of 52 to 58.5 cents since mid Feb 06. Technical target from this breakout of trading range is 63.5 cents and stock looks poised test the gap resistance.
Resistances: 62 to 65.5 cents (gap resistance, also EMA 200), 68 cents (resistance in Feb 06), 70 cents (psychological resistance), 71.5 cents (recent highs achieved in Jan 06)
Supports: 58.5 cents (previous resistance turned support), 56/56.5 cents
...........continued at my blog
Extracted from my blog http://kelongstocks.blogspot.com
Please visit my blog for full writeup
[B]Fundamental Analysis[/B]
Excellent 1Q FY06 results to me especially considering the recovery in margins rom 4Q05. No wonder that prices climbed 3.5 cents to 60 cents on Thurs 11 May 06.
Even after stripping out extraordinary items and foreign exchange gains, net margins still rose from 1.4% in 4Q FY05 and 3.5% in FY05 to 4% in latest quarter despite rising raw materials cost given high oil prices. The better results was largely due to strong orders and stable average selling price for laser printer cartridges.as well as continued strong demand for notebook casings. Strangely, gross margins also improved from 4Q05 despite higher raw materials cost environment. I believe this is due to higher margins from printer cartridges.
Risks to prospects include continued record high oil prices which will continue to put margin pressure on plastic products segement and also record high copper prices which will hit the margins of its wire, cable and related components segment. This has been factored into in the forecasts for gross profit margins and net profit margins for FY06.
Huan Hsin expects notebook casings shipments to remain strong and post double-digit growth due to increasing affordability of notebooks, and strong orders for laser printer cartridges and printer related products. Upside potentials include marketing of a new product, ultra mobile personal computer, and potential higher average selling price for printer related products if Huan Hsin can successfully secure orders to perform full assembly of the printer products.
..........continued at my blog