looks like yesterday slam down was deliberate to collect as much cheap stock as possible before the better fundamentals are disclosed.If today's closing is above yesterday's midpoint,it will be a bullish engulfing candle ,confirming a continuation of the uptrend to go above the previous high of 134 and will be testing resistance of 147
This counter is in a sweet spot now. Under valued by all metrics and under owned by investment funds. Its price having strong relative strength now. Will out perform.
looks like the stock is going to test resistance of 147 recorded in april 2011.based on strong demand at 130s the smart investors are confident of much higher price 170s (30%upside) going forward
The ringgit is now at 3.72 versus US dollar and I believe it will weaken further to 3.90 or 4.00 even when the Fed raises interest rates in 2 months time. Imagine what a boost this will do to Evergreen's profits ahead !!
The stock is performing as what the chart says .It will test 147 and going by the weekly chart should be able to break thru as stale bull at those prices are not formidable.The stock is indeed in a goldilocks pattern with plenty of upside as rising momentum is strong at both daily and weekly charts
It's not easy to find a counter at the moment where both the technical and fundamental outlooks are positively aligned. Looks like further gains ahead.
Any pull back soon is a buying opportunity as far as this counter is concerned...the ascendency of this counter is unstoppable albeit a little hick ups every now and then but the up trend will be intact until one of this two things were to take place which I don't foresee in the near future...1. the sudden surge in oli price to USD 100 per barrrel and..2. the sudden appreciation of RM vs USD up to 1 USD =circa RM 3.00. I personally expect this counter to go all the way up to RM 2.00 within the next two quarters...
This is the only stock which from my cursory research and keen observations has got all the perfect confluence of micro and macro economics factor to propel into the near future with exceptional returns...it is definitely undervalued at the present price when taken into account its potential P/E ratio of at least multiple of 12 going forward..
Agreed with kmohan62. By the way US housing market is continuing to grow strongly and augurs well for the MDF industry. Should be good for medium to long term investors in Evergreen.
A comparison with both hevea n homeriz is applicable here. both hevea n homeriz are doing at per of about 12xeven with forward earnings.Evergrn with forward earning of 80m or a eps of15.5c should therefore sit at a price of 1.86 in line with the other players in the sector.No wonder the smart investors are gulping up at 140 n below
Those who follow this forum and read my comments and recommendations and acted upon it about 4 months ago...you would have raked in about 30% of gains...but don't despair,it's not too late..there's still a upside potential of at least 25% going forward...achievable within the next two quarters..strictly not for speculators and contra traders!!!
The news that Tabung Haji no longer a substantial shareholder in Evergreen Fibreboard is a welcome news...this means that the fund disposed to take profit...it will go back to accumulate again slowly but surely after the counter dropped to a certain level...meaning it's time to accumulate on this stock again...I expect it to resume its uptrend after sometime...that is the reason I keep on saying that this counter is for mid to long term investors with a time line investment horizon of 2 to 3 years...as for contra traders and greedy speculators...sorry folks...I don't to say ` I told you so!'.
At noon today, ringgit against dollar has weakened further to 3.7845.The Greek issue is causing a further strengthening of the dollar. Evergreen is further benefitting from this. Golden opportunity to collect more shares.
Greek default or not...this stock will keep up with its uptrend as long as the exchange rate and petroleum price is not in favour with ours...a little hick ups here and there is a welcome signal to keep on accumulating on this counter...take my word..the next quarterly result due in August will be as good as the previous quarter if not better...
817065, This time around there is a strong possibility that the 2007 record could be surpassed for there is an added bonus of favourable exchange rate besides the low oil price...if this two macro economics fundamentals were to continue in confluence,I suppose the RM 2.16 threshold could be breached within the next four quarters..
kmohan62, that is very possible because Evergreen's production lines have now been entirely upgraded to the latest technology, meaning their profit margins could now be much higher than before. Or at least they should be more competitive than in the past.
817065 Yes,you are absolutely spots on as to the possible rise in the company's margin..investors should take note of the fact that Evergreen had in the past taken various measures in mitigating its losses,one of such is the kitchen sinking measures.This together with the modernisation of manufacturing plant will add further zeal to its production capacity vis - a - vis enjoy economic of scales which invariably add to its profit margin...now that oil price is still low compared to the days when this company used to make very good profit...add to it the macro economic conditions of reinvigorated US economy and the resulting housing demand..all these coupled with the weak Ringgit is gelling well to further propel the ascendency of this company in the mid term..
Hi Ethan 1986, My analysis is based on micro and macro economic fundamentals..but one has to always prepared for drop in the price every now and then due to profit takings and some other short term knee jerk reaction from the market..thus it is imperative that one will have to have a long term perspective on this counter to make handsome returns from this stock..not for speculators..
The beauty of this counter is that it is still largely ignored by the major research houses, except only for one HLG. This is actually a good situation to be in!
Now that the stock is scratching at 147,it is time to revisit the charts to see what is in store. The daily , weekly and even monthly chart are in sync for a higher high.next resistance is 158 after which it should be making an assault on 180 and so far the path is clear for the price to go higher
Sold all at 1.46. Will it go higher. Don't want to be greedy. Cukup makan enough. Let others have it though I am bullish on the exchange. But how is the business doing these few months since last result
The last quarter results of Evergreen shows a net profit margin of about 10.25% vs Mieco's a meager 3.75 %...this simple statistics demonstrates the superior value of Evergreen..
If you were to read HLG's 17 June research report on Evergreen more carefully, you will notice it mentioned that the group is also going upstream which has higher profit margins. Upstream means furniture and housing products etc. Think of Poh Huat, Latitude, Homeritz,Signature, Lihen, etc. How are their profits?This means Evergreen will become a fully integrated group in their industry, from growing rubber wood, producing glue and resins to furniture etc.Perhaps this will be the first fully integrated MDF group in the world. Management is very focused and committed to their business. Should have a bright future in the medium to long term.
Once they go upstream,the cost of production will be much lower than its peers simply because the company's subsidiaries will be supplying the required raw material almost at cost..definitely an upper hand with comparative advantage..which will add to its bottom line..
Peiyen2006 is right -this is the reformed, stronger,new Evergreen 2, the second coming. Buying on dips will be a very good strategy. You can already notice the steady buying support on a daily basis.
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....
kimssiat
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Posted by kimssiat > 2015-06-15 21:46 | Report Abuse
BUT .. dropped 10% in a day?