Re:Sinotel Technolog... by neontet12th, Mar. 06:48 PM Very reassuring to know that Sinotel is getting higher in the val...
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HI-LITE: Technical analysis of CHINA ANIMAL, MAP, STRAITS ASIA
Written by Charlie Lau
Sunday, 31 January 2010
Uptrend could be intact
CHINA ANIMAL HEALTHCARE
25 c (Jan 29)
52-week Hi/Lo
30 c/ 6 c
Dividend yield
1.8%
PE ratio
11.1
Net asset value
8.3 c / share
Issued shares
1,380 m
Technical comment: China Animal Healthcare is involved in the manufacture, distribution & sales of animal & poultry healthcare products & vaccine. In May 2009, it placed out 130 million shares at 11c and in September another 120 million shares at 21.5c.
Its share price has been quite volatile, trading between 19c & 30c from December 2009 to date. Daily volume turnover is also quite substantial from December 2009 to date.
The closing price on 29 January was 25c, with the share price down in line with the general market’s technical correction. Looks like the share price is trying to test the trend line resistance of 28.5c.
The 14-day Relative Strength Indicator & the Stochastic Momentum have also reached ground level and are turning up, indicating support for the share price to rise further.
As long as the share price does not go below the critical support of 24c or anywhere along the trend line in the days to come, the up trend should be intact.
14-day Relative Strength Indicator & the Stochastic Momentum are still on down trend
MAP Tech
6.5 c (Jan 29)
52-week Hi/Lo
11 c/ 3 c
Dividend yield*
7.5%
PE ratio
7.4
Net asset value
3.9 c / share
Issued shares
1,858 m
*Adjusted for rights issue
Technical comment: MAP Tech is 43% owned by Taiwan Min Aik Tech and is applying to do a dual listing in the Taiwan’s GreTai Securities Market via a listing of 228m Taiwan Depositary Receipts.
At the moment, MAP Tech hasn’t resolved some legal issues with M&J Tech and claims from Jurong Tech Industrial Corp.
Its share price has broken downwards the three Moving Averages on 18 January at 7c and is still stepping down. The two day extremely Hi Volume on 29 & 30 December 2009 pushing the share price up from 6.5c to 8.5c and then fizzling off indicates an "inverted pyramid” toppling over.
Share price may test the previous Lo of 4.5c. The 14-day Relative Strength Indicator & the Stochastic Momentum are still on a down trend. Upside is limited to 7.5c and 8.5c.
The 14-day Relative Strength Indicator & the Stochastic Momentum have tested their lowest & are moving up
STRAITS ASIA RESOURCES
$2.16 (Jan 29)
52-week Hi/Lo
$2.74 / 74 c
Dividend yield
4.4%
PE ratio
13.6
Net asset value
56.7 c / share
Issued shares
1,093 m
Technical comment: Straits Asia, a coal-based energy company, is a market favorite despite its licensing problems in Indonesia and the recent coal mine collapse, also at a mine in Indonesia in heavy rain. Both issues have been resolved.
In June 2009, Straits Asia successfully sold off its 60% stake in Straits Bulk & Industrial to the Thai energy company, PTT Group, for US355m.
At the close of $2.16 on 29 January, the downward slide from the 52-week Hi of $2.74 on 6 January seems to be limited to the trend line critical support of $2.12.
If this $2.12 critical support or higher along the trend line as days go by is broken, the next drop could be a collapse to $1.98.The 14-day Relative Strength Indicator & the Stochastic Momentum have tested their lowest & are moving up.
These two indicators should support the share prices to the closing levels of the other two Moving Averages at $2.36 & $2.45.Volume over the last seven days has been heavier when the share prices were at the Lo levels, indicating a base formation of a pyramid – strong buying support.
Trading range should be between $2.12 & $2.45.
As mentioned in my technical report on the Straits Times Index on 27 January, the general market is undergoing a technical correction. Speculators without sufficient funds to pay for their purchases should not attempt to “catch a falling knife”. Rebound in any stock may take more than one contra period.
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