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Hong Leong Asia is also likely to be a big beneficiary of the construction boom and will most likely secure deals with the Marina Bay Sands project because the company is close to the developer, Las Vegas Sands.
"The prices for building materials are already on the rise and they are likely to continue rising as construction of the [casino] resorts gets underway," Credit Suisse said.
This one is probably on a downtrend.
CIMB said it has raised its net profit forecasts for for 2007 and 2008 by 1-4% to $80.1m and $101m respectively to reflect the growth prospects of its building materials group (BMG).
The brokerage noted that BMG, which contributes 20% of Hong Leong Asia's earnings, is well-positioned to benefit from the rebound in Singapore's construction activities given that it is Singapore's only integrated building materials supplier.
"Sustained flow of construction projects awarded over the past 12 months provides a solid base for acceleration of building material demand as the IR (integrated resort) and BFC (Business Financial Center) projects come on stream in 2007-2009," CIMB said in a note.
It noted that Hong Leong Asia's granite operations at PT Karimun, the largest quarry in Southeast Asia, also provide the company with a secure source of granite and competitive cost advantage.
The brokerage is keeping an "outperform" rating on the stock with a price target of $1.92.
Hi all
Just read a report by the CitiGroup on HLAsia.
Its calling for a buy.
Hi Sporeguy,
Thats why I generally believe that MAs do not really work very well. I personally feel that RSI and AD are more reliable TA indicators.
But thats just my personal opinion
Hi pcw,
I try to study HLAsia using ShareJunction Chart. It is quite easy for many of us to fall in the trap. For eg, you will notice the default MA7 is getting very close to MA14 in early June, looking like MA 7 is cutting upward (or horizontal) through the MA14, but in the end it did not due to market factors (esp the man B in the USA). If you study The MA7 and MA 14 in 2nd half of March, you will notice the MA7 and MA14 cut each other a few times before the price went up.
Let study the prices (MA 7 will be better) as the lower chart and the RSI as the upper chart.From late May to early June, although RSI fell below 30, there is no divergence between the MA7 and RSI. So nobody can tell when the price reversal will happen.
If you use the wave theory, HLAsia is on the 5th wave downwards, how far down is also a question.
So one has to be patient and study the TA indicators carefully and also the FAs if one can get hold of them.
Everyone make mistakes, something carried away by excitment and forget to check TAs carefully. No one can always correct. As long as one makes correct decisions more than the minor wrong decisions, then it is worthwhile to invest in share, otherwise one will be eaten up by the big fish who have more FA info and deep pockets.
I'm not surprised.... you bought it at a time when volume is low and RSI is downtrending. I do not see an uptrend happening soon.
Sorry pcw7447... :(
The price being down ever since I bought this share..Any tips