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.

You might be richer than you think. (How rich is rich?)

Someone asked me how to be rich? 

I asked him what did he mean by rich? 

That got him thinking. 

Is a person rich if he has $1m in cash? 

Is a person rich if he has $1m in cash and a property worth $1m at the same time? 

Or is a person rich if he has a net worth of $5m? 

What am I trying to say? 

To me, rich is a relative concept.






If we keep comparing ourselves with the next richest person, it can never end. 

Of course, if we became the richest man in the world, then, there is no one left to compare with but how many Bill Gates can there be? 

Stop comparing with others.




I think the most important measure of wealth in this world has to be "happiness"!  

Yes, I remember how I shared a moment with my younger sister about how our family was not doing very well when we were in our teens. 

She said "But we were happy."  

That was a simple statement but a very poignant one. 

What is the point of having lots of money but be unhappy?






Having said this, we should not be so blind as to think that we can be happy without money in this modern world as money problems could surface sooner than later. 

So, we still need to make money, to save money and to make our money work harder for us. 

This is so that we do not have to worry about money matters in future. 




The idea is to have enough passive income to take care of our daily needs and some wants.

Of course, what each person needs is different. 

So, how much passive income is required is also different from person to person. 






Just do not forget that being happy is more important than the pursuit of money. 

If we can be happy every day of our lives, we are truly rich.

If your life is a happy one, you are richer than you think.

If AK says so, it must be so!






Related post:
Passive income: A higher purpose.

Healthway Medical: 3Q 2010 results.

Healthway Medical's results came in rather weak, as expected:

1.  Revenue declined 6.2% in Q3 compared to the same period last year.  For the first 9 months, revenue declined 8.3% compared to the same period last year.

2. Staff cost increased 19.2% in Q3 compared to the same period last year.

3. Profit before income tax decreased 87.3% to $568k in Q3 compared to the same period last year.

4. Cash flow from operations is negative for the quarter at -$1.278m.

5. EPS for the quarter is 0.01c, remaining the same as the last quarter but down from 0.29c in the same quarter last year.

See results here.

We are still in the tunnel but do we see a tiny glow at the end of the tunnel?

A. Although revenue declined 6.2% compared to the same period last year, this is a smaller decline compared to Q2's decline of 12.3%. 

B. Staff cost increase of 19.2% is also smaller than Q2's 22.9%. 

C. Profit before income tax in Q2 was only $165k. So, Q3's $568k is an improvement. 

D. Cash flow from operations in Q2 was a negative $2.3m compared to a smaller negative $1.278m in Q3. 

Perhaps, points C and D are the most important indicators that things could be stabilising. However, it is still too early to say for sure.

Having said this, the proposed diversification could throw a spanner in the works. One could only hope that Healthway Medical is not biting off more than it could chew.

On 25 Oct, I suggested that Healthway Medical's share price could have found a floor at 15c. I also mentioned that any rebound would be a good chance for stale bulls to reduce exposure. 17c was never hit as the rebound in price went as high as 16.5c before declining again.

The last session saw Healthway Medical closing at 15.5c. With the MACD, MFI and RSI all in their respective downtrends, a retest of the support at 15c is rather likely. Consolation? Volume has been declining in the last few sessions. So, we could have a soft landing.

Related posts:
Healthway Medical: Second quarter results.
Healthway Medical: Business diversification.
Healthway Medical: A floor at 15c?