OCEANCASH Pacific Bhd (Code:0049) has enjoyed a significant jump in its share price so far this year, almost doubling from 39.5 sen on Jan 3, to a high of 75 sen in intra-day session yesterday.
The stock saw its best days in Q2 as a meteoric rise on April 3 and 4 witnessed the stock surge from the 55.5-sen level to the 70-sen mark before proceeding to pace higher to its all-time peak of 86 sen.
With such a rapid rise in fortunes, the counter was due for a correction as investors took a breather and reaped the profits.
Based on the daily chart, another attempt to challenge the peak in July fizzled and the stock entered consolidation mode, trading in the lower 75-80 sen band.
Since then, this stock has been trading closely to the 14-, 21- and 50-day simple moving average (SMA) lines, and has now been joined by the 100-day SMA.
The 200-day SMA, which has remained intact throughout the stock’s ascension this year, remains in a healthy upward trending position.
Apparently, this counter shows healthy and north-facing indicators. The slow-stochastic momentum index gave a “buy” signal in mid-week and is poised for another bullish cycle. It is placed relatively low in the neutral territory, which means there is plenty of room for the bulls to run before they reach the overbought zones.
In addition, the daily moving average convergence/divergence histogram is also bullish, although more tempered in its posture. It is moving almost parallel to the signal line but keeping afloat in positive territory.
Meanwhile, the 14-day relative strength index is pushing upwards from the neutral area as the current trend gains strength.
Trading volume, however,has not returned to the levels seen during the upwards push in Q2, suggesting investors may still be cautious given the tepid principal market environment.
Should the buying resume, the bulls are poised to re-test the historical peak of 86 sen, or explore uncharted territory.
To the downside, the 200-day SMA offers concrete support at the 67-sen level.
The comments above do not represent a recommendation to buy or sell.
(Code:0049) has enjoyed a significant jump in its share price so far this year, almost doubling from 39.5 sen on Jan 3, to a high of 75 sen in intra-day session yesterday.
The stock saw its best days in Q2 as a meteoric rise on April 3 and 4 witnessed the stock surge from the 55.5-sen level to the 70-sen mark before proceeding to pace higher to its all-time peak of 86 sen.
With such a rapid rise in fortunes, the counter was due for a correction as investors took a breather and reaped the profits.
Based on the daily chart, another attempt to challenge the peak in July fizzled and the stock entered consolidation mode, trading in the lower 75-80 sen band.
Since then, this stock has been trading closely to the 14-, 21- and 50-day simple moving average (SMA) lines, and has now been joined by the 100-day SMA.
The 200-day SMA, which has remained intact throughout the stock’s ascension this year, remains in a healthy upward trending position.
Apparently, this counter shows healthy and north-facing indicators. The slow-stochastic momentum index gave a “buy” signal in mid-week and is poised for another bullish cycle. It is placed relatively low in the neutral territory, which means there is plenty of room for the bulls to run before they reach the overbought zones.
In addition, the daily moving average convergence/divergence histogram is also bullish, although more tempered in its posture. It is moving almost parallel to the signal line but keeping afloat in positive territory.
Meanwhile, the 14-day relative strength index is pushing upwards from the neutral area as the current trend gains strength.
Trading volume, however,has not returned to the levels seen during the upwards push in Q2, suggesting investors may still be cautious given the tepid principal market environment.
Should the buying resume, the bulls are poised to re-test the historical peak of 86 sen, or explore uncharted territory.
To the downside, the 200-day SMA offers concrete support at the 67-sen level.
The comments above do not represent a recommendation to buy or sell.
Declared Single Tier Interim Dividend of RM0.008 per ordinary share in respect of the financial year ending 31 Dec 2017 Ex-Date: 08 Dec 2017 Payment Date: 29 Dec 2017
Review of Performance For the Current Financial Quarter and Financial Year-to -date: The Group's revenue increased by 12,9% to RM23.299 million quarter-on-quarter basis mainly due to increase in sales in hygiene division in Malaysia,Japan and Thailand.On year on year basis,the Group's revenue increased by 11.8% to RM67.343 million,mainly due to increase in sales in hygiene division in Malaysia and Japan,and also increase in sales in felts division in Philipines and Thailand. The Group's recorded a decrease of RM0.085 million in net profit on quarter-on-quarter basis,mainly attributed to weakening of Indonesia rupiah and the drop in sales in felt division On year-on-year basis,the Group's recorded an increase of RM0.582 million in net profit,due to increase in revenue in felt division and hygiene division
Materials Change in Profit Before Taxation of Current Quarter in Comparison with Previous Financial Quarter's results:
The Group's recorded an increase of 5.3% in revenue to RM23.299 million compared previous quarter of RM22.119 million and increase of RM0.840 million in profit before taxation .The increase in profit before tax was mainly due to higher revenue in felt division and hygiene division and provision for foreign exchange
Prospect for year 2017
Barring unforeseen circumstances,the Directors anticipate the Group's performance for the financial year 2017 to be better than the financial year 2016
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Si Min Tan
246 posts
Posted by Si Min Tan > 2017-11-04 01:13 | Report Abuse
@Jeffbkt thank you Jeff!