Healthway Medical: A low of 16c.

On 17 August, I mentioned that "there is a chance price could decline further.  If it happens, the next support is at 16c." Price touched a low of 16c today on moderate volume.  16c is also where we find the rising 200dMA today. Could this support hold?

The MFI has formed lower highs which suggests weakening demand but it recently emerged from the oversold territory which suggests the return of some demand, although weak.  The OBV does not show any drastic distribution activity while the RSI continues to decline in oversold territory, suggesting that the selling might be overdone.  Lacking in positive catalyst, this counter's price could, however, trade lower.

Taking a look at the weekly chart, we see the 50dMA at 15.5c and this would be a stronger support.

Related post:
Healthway Medical: 17c support.

Golden Agriculture: Moving higher?

The fundamentals of CPO remain good and the recent price weakness in Golden Agriculture was accompanied by rather light volumes. Price broke resistance at 55.5c in today's session and closed at 56c.  55.5c is where we find the 50dMA.  Next resistance is at 57c. This is where we find the declining 20dMA and the downtrend line.  If this resistance level is taken out, we could possibly see the longer term resistance at 62c retested.

The MFI is rebounding from a low while the RSI has risen out of the oversold region. The MACD's decline in negative territory has halted and it is pointing slightly upwards.

Aug 31: Golden Agri, Kim Eng, Yangzijiang, Ezra. Crude palm oil for November delivery increased 1.1% in Kuala Lumpur yesterday, extending its three-day advance to 3.4%.
Tuesday, 31 August 2010

© 2010 - The Edge Singapore

Related post:
Golden Agriculture: Breaking the 200dMA.

Saizen REIT: Insiders buy.

Mr. Raymond Wong Kin Jeon, a director of Saizen REIT, made open market purchases of 2,584,000 units which bumps up his deemed stake from 1,262,100 units to 3,846,100 units. The units are held under HSBC (Singapore) Nominees Pte. Ltd.

A substantial shareholder, Argyle Street Management Limited, made open market purchases which increased its deemed stake from 166,340,912 units to 175,048,912 units.  Kin Chan, who is the beneficial holder of more than 20% of the issued share capital of Argyle Street Management, increased the stake further to 177,469,217 units.  This is 18.609 % of the issued capital of the REIT.

The percentage figure (after the transaction) is calculated based on Saizen REIT’s total issued 953,657,355 Units as at 27 August 2010. It should also be noted that Saizen REIT has 492,700,062 warrants in issue as at 27 August 2010.

Related post:
Saizen REIT: Better than expected DPU.

Tea with AK71: Bought an iPhone 4, almost.

I am an techno dinosaur.  Till today, I do not know how to use Excel.  When a reader asked if I would consider starting a Tweeter account, I couldn't figure out the reason why I should start one. At a recent visit to a customer's shop, one person asked how many in the room had an iPhone and I was the only one who did not answer in the affirmative. Why an iPhone? Maybe, I am an endangered species.

A few weeks ago, I read that people were selling their iPhone 4s at $1,300 to $1,400 at Sim Lim Square! They would re-contract, get their iPhone 4s and sell them for a quick buck.  Does it really work? Recently, my contract came to an end and remembering what I read, I went to Singtel to see if I could get an iPhone 4 and, perhaps, make a quick buck in the process too.

Here's the deal: I had to pay $480 for a new iPhone 4 and upgrade my plan which means paying an additional $20 per month.  I did some math. It worked out to be $480 + $20*24 = $960.  I figured if I could sell the phone for $1,300, I would make $340 right away!  That's not bad.  So, I told the salesman I would take the iPhone 4. 

The salesman gave me a look, that kind that suggested he had seen my type before. Was I that obvious? Maybe, I took too long to do my mental sums.  He asked in a voice that sounded rather bored if I had made a reservation.  A reservation?  Yes, apparently, we had to make a reservation to get an iPhone 4 as there was a long line of people waiting! 

Wow!  Apple is definitely rolling in the dough.  This is the best kind of business to be in, goods are presold and no stocking is required.  A HTC or a Samsung and I would not have to wait.  Nokia only came to mind belatedly.

Anyway, I went ahead and made the reservation after being advised that it would take about 3 weeks before I could get the phone.  I then found out that evening that the price of the iPhone 4 had fallen to $1,080 in Sim Lim Square.  Apparently, the price was very high weeks ago because of shortages.  The supply is not so tight now.  I was too slow. 

I could still make $120 at $1,080 but the price could drop more in another 3 weeks while I waited for my phone. Sheesh! So much work for so little profit plus lots of uncertainty thrown in.  I will stick to a free phone.