China Hongxing: Testing support.

The last time I blogged about China Hongxing was on 26 Oct. I concluded by saying "The 100dMA has just completed a golden cross with the 200dMA at 16c.  This is likely to be strong support level and would be ideal as an entry to go long on this counter. In the meantime, 17c is immediate support and could be a nice hedge in case price does not test support at 16c." Since then, the rising 100dMA has moved up further and is now providing support at 16.5c which was where price closed today after having touched an intra day low of 16c.

The lowering in price has been accompanied by a lowering in volume. Looking carefully at the MFI and RSI, it seems as if they are forming higher lows of late. A low volume pull back underway? Looking at the OBV, there is no heavy distribution. The overall picture shows that China Hongxing's price might have found a floor. It is hard to say that it has bottomed since the MACD is still declining below the signal line in negative territory.

If 16.5c fails to hold up as immediate support, the next support is at 15.5c as provided by the 200dMA.

Related post:
China Hongxing: Correction.

Courage Marine: 3Q 2010 results.

A good set of  numbers for 3Q 2010:

1. Revenue improved 54% from the same period last year from US$ 5.506m to US$8.474m.

2. For the 9M 2010, the company turned in a total gross profit of US$9.964m compared to a loss of US$3.245m for 9M 2009. If we remember, it was 4Q 2009 which saved the company, allowing it to have a small net profit for the full year.

3. EPS for 9M 2010 is at US0.85c compared to a loss of US0.27c in the same period last year. EPS for the full year would probably be more than US1c.

It would have to take a very bad 4Q 2010 to destroy whatever the company has achieved in positive numbers thus far in 2010.

A reader asked if there would be a sell down tomorrow. Although I do not see any reason why there should be a sell down, the carnage in the SSE last week could affect the STI and Courage Marine's price. After all, a large portion of the company's business is Chinese. The sell down would be due to negative sentiments, however, and not because the company's fundamentals have taken a turn for the worse. In case of a sell down, I would accumulate. Why?

Courage Marine's management has a track record for sharing the the fruits of its labour with shareholders. Last year, despite ending the year with a small net profit of only US$75,000, it declared a dividend of US0.47c per share due to its strong cash position. Net profit for 9M 2010 is already US$ 9.012 m! Even if 4Q 2010 does not turn in any profit which I believe is unlikely, net profit this year is already 120x higher than the whole of 2009!

Dividend payout for 2010 could be quite a bit higher than 2009.

See results here.

Related posts:
Courage Marine: Riding the waves of recovery.
Courage Marine: Steady as she goes.