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The interest in Healthway Medical's rights also hit a low note today as the price touched an intra day low of 7.5c. This is a far cry from the first day of trading when it traded as high as 9.5c! This also means that the purchasers of these rights would be able to own more Healthway Medical's shares at only 15c after paying another 7.5c by 9 Feb 2010, the deadline for the acceptance and payment of the rights. Why buy the mother share at 16.5c then?
Personally, I see 15c as an important XR support level, followed by 14c. For anyone who is interested in owning more Healthway Medical's shares at this point in time, buying the rights at 7.5c seems like a better idea than buying the mother share.
DMG and Partners, who initiated coverage of Healthway Medical earlier this month and issued a buy call with a target of 28c has issued a new lower target of 21c yesterday. They cited the enlarged capital base due to the new shares from the rights issue as well as a share placement exercise as the reasons for lowering the target price. It may be coincidental but this gels with my XR eventual target price of 21.5c compared with my CR eventual target price of 24c earlier.
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17 comments:
AK71,
Does it mean that it is advisable for me to sell my mother share @16.5 cents and buy in the right @0.075 cents, if possible.
Will this move allow me to lower my capital layout for Healthway?
Thanks for sharing.
Kingston
Hi Kingston,
I am quite sure that some investors are doing that to take advantage of the difference of 1.5c per share in capital commitment. Every 100 lots will save them about $1,500! Definitely nothing to scoff at.
You need a bit of luck as well since you want to get the rights at the lowest price and sell the mother shares at the highest price. Good luck. :)
Hi, Ak71, where did u get the DMG new coverage of 21 cents? mind sharing the link.
Hi, I picked it up from ShareJunction's forum. Apparently, the release was for private circulation only but a nice forum member put it up to share. Why a private circulation when the target is lowered to 21c while their earlier coverage with a target of 28c was not private? hmmm...
Here is the link:
http://www.sharejunction.com/sharejunction/listMessage.htm?topicId=7019&searchString=&msgbdName=$%20Healthway
Hi Anonymous,
It's also reported on DMG new coverage on Healthway in this website
http://www.sharesinv.com/5NG/
Kingston
AK 71,
Presently,lowered my Healthway holding to 500 lots. Sold 200 lots at 0.165 yesterday. Not losing yet as I can use the gain from the rights to cover 500 lots at lost of 0.025 cents. Hope to buy back later after the rights issue are fully settled.
I am also diverting back to my old counter China HongX. Managed to get 100 lots at 0.185 yesterday. Hope to accumulate when it weaken.
Any suggestion on my strategy.
Kingston
Hi Kingston,
Seems like you have thought through your moves. Healthway Medical does look like it is suffering from fatigue of late. With more shares being issued and with the lower target price by DMG, it is probably difficult for the counter to form a new high anytime soon.
As for China HongX, I am not following this counter. So, I cannot comment on the fundamentals or technicals but your strategy of buying some of its shares now and accumulate "if" it weakens will work if the counter is in an uptrend.
hi ak71, i put up the DMG coverage on share junction. Healthway had been generating some interest by your blog lately.haha...so just return the favour for your insightful blog. My broker sends reports to me everyday so i will post up the latest on golden agri, saizen etc whenever i can (during office hr). Office laptop blocks blogs so i can only post it on sharejunction.
Hi Jason,
Thanks for recommending my blog to forum members at ShareJunction. :)
I am not sure that my blog is that powerful to generate much interest in anything. Haha.. It is just an electronic diary to hold (and share) my thoughts, more or less. The positive effects it generates, if any, are a bonus. :)
Come back often and have a good weekend.
Hi Kingston,
I was just doing my weekly read of The EDGE and saw a glaring headline that says "Value Partners Group pares stake in China Hongxing". They sold 5.7m shares on 22 Jan and reduced their deemed stake to 4.97% from 5.18%.
Since you are interested in accumulating shares of China Hongxing, you might want to do a bit more research as to why the big boys are selling. In the write up, it was revealed that China Hongxing's Q3 profit fell 78% while sales fell 29.5%.
If you have done a thorough FA on China Hongxing and are comfortable enough to hold, just ignore the noise. :)
hi kingston,ak71,
hi ak71, im a regular visitor(my name roni) of urs...i ,too, like kingston bought 1000(HW) and sold 300(HW) at 0.18...oso sold 140(HWR) at 0.8...now holding 700(HW) @0.19...now waiting to buy HW again to average...have to park as market seems mixed..
Kingston : fyi
http://mystocksinvesting.com/singapore-stocks/china-hongxing/china-hongxing-breaks-all-3-ma/
roni
Hi Roni,
Thanks for being a regular visitor. :)
You bought Healthway earlier in the month like Kingston as well? 1000 lots and all at 19c? Also a big timer!
I just looked at the link you provided. China Hongxing broke the 200dMA. That's bad. Should be food for thought for Kingston.
AK 71 and Roni,
Thanks for the valuable inputs and sharing. Appreciated. I was awared of these news and reports on China HongX. Maybe,be happy with the 100 lots I possessed on friday and shall not accumulate this counter.
Will free my stake in Healthway on Monday @0.165 if possible to reduce lost. Will definitely buy in later if the price drop to 14.5 cts.
I am confidence about Golden Agri but did not make it @ 0.48 the last week. Maybe will Q @ 0.5 on Monday in lesser quatity and do leveraging later.
Cheers
Kingston
hi again,
Yes I bought all HW all at 0.19...i bought saizen too at 0.16 (100lots) but sold it on friday at 12.05 (that,s me):)lost on brokeage...sold becos i read abt toyota problem...but will aim to buy again later....got caught GA @0.555 when it retreated from 0.65cts.....my total paper losses now stand at 60K...my portfolio kepcorp, kepland and roxypac....all bought at high price (18/01/2010)...will start to hedge my fund to currency (in euros) ....and to AK47 on behalf of all ur visitors here would we like to thank you for ur sharing and selflessness....roni
Hi Roni,
Thanks for sharing with us so candidly.
It seems like you need to work on your technique. Start from the ground up. Pick up FA and then, TA. It will take time but you will find that the time spent is worthwhile. You might wanna start with the books I have identified in the box in the top right hand corner of my blog. Amazon's prices are very good. ;-)
I might blog about my own experience and some lessons learnt over the years. Maybe, it will inspire but, for sure, it will show that there are no short cuts to making money in the stock market. Ok, maybe there are but I haven't found them yet. ;p
Roni,
Don't be disheartened. AK 71 advised is logical. Read and learn.
Me too,buy on impulsed and had lost almost 100K, both in CPF and cash over 10 years.
For this economic downturn, I was death sure that I can recoup my lost ground easily when the stock went rock bottom. However, due to lack of confidence, I missed another golden opportunity but luckily the STI only reach the mid point from the all time low towards 3700 point or higher, I believed.
I also promised myself that I will not miss the next economic downturn 5 years down the road. By then I should have more fund to invest.
Cheers
Kingston
hi kingston,
im ok and thks....will continue to trade wisely and will try to read & learn fast....a wise man learn from other people's mistake....a stupid man learn from his own mistake but a fool will never learn....dun want to be that fool...:))
roni
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