Posted by Kannibu > Feb 16, 2014 12:52 PM | Report Abuse
POHUAT owners have no choice because the little tempest in the teacup happened between them and the "operator", so they have to buy back all the shares....
This is the reason of yesterday's big surge in volume and price. And the stock dies off this morning with no more volume and the price also dropped. If you are still holding, better sell now!
Posted by JhoLow > Feb 17, 2014 08:18 AM | Report Abuse
Hi brendonyeap, comparing apple to apple between POHUAT and HEVEA :
1) Company Management : both have shown professional management and good corporate governance since listing without any scandalous or major misstep, unlike LIIHEN which is now deeply entangled with a legal suit brought by a disgruntled and professional shareholder where the case can drag on for years and destroy the company's image totally. However, HEVEA has the added advantage of a real-world major crisis management experience in 2009 which almost brought the company to the brink of extinction. After seeing the shares price of HEVEA dipped to an all time low of 9 sen and how it managed to crawled back to where it is now, henceforth the massive improvement of its balance sheet, I am astounded at how awesome the management of HEVEA. POHUAT on the other hand was on a smooth sailing, as such we are not sure if they too can stand that kind of stress test. For this, I will give HEVEA a STAR.
2) It is arguable if selling by the insiders / directors is the sole root to the softening of its shares price. An opposing view suggests that this type of insiders selling actually improve the liquidity of the company's shares. In the case of selling by the directors of HEVEA for less than 500,000 shares during the last two months period which really is chicken feet considering HEVEA's 90.4 million issued shares. For this, I will give no STAR to the two.
Posted by JhoLow > Feb 17, 2014 08:43 AM | Report Abuse
3) Good Future Prospect : POHUAT has a direct nemesis in the name of LIIHEN which makes identical products and compete in the same USA market which accounts for more than 90+% of their revenue. However, both are OEM manufacturer without establishing a brand name of its own. HEVEA on the other hand has a more diverse clienteles with almost equal footprints in Japan, China, the Middle East, Europe and the USA. I will spare to reason out the benefits of a diverse clients base here, for the plus points far exceed the negative points. On top of this, HEVEA has already embarked on its own branding a few years back and the same has been gaining momentum in Japan and China. To add another feather to the cap, HEVEA is now the largest PCB manufacturer in Asia with a German TUV technology and it's products has been widely recognized to be of superior quality, judging by the "Sole Supplier" status by AEON Japan. Further, the DIY and versatile natures of PCB small furnitures are more nimble than the large furniture business model undertaken by POHUAT. So a STAR is deserved by HEVEA in terms of future prospect. 17/02/2014 08:40
Posted by JhoLow > Feb 17, 2014 09:05 AM | Report Abuse
4) Bullish Outlook : Well, it must be said that with the strengthening of USD, it augurs well for exporters like POHUAT and HEVEA. One man's gain is another man's loss, the stronger USD translates into a weaker RM, consequently a stronger Euro, JPY and Renminbi which benefitted HEVEA.
Due to the nature of small furnitures manufactured by HEVEA, it is easier, cheaper and much more possible to adopt manufacturing plant automations than large furnitures which POHUAT makes. In this respect, HEVEA has already embarked on the automation to replace human labours in its Gemas plant 2 years ago. The result is dashing with a >30% cut in foreign labours requirements. Plans are afoot to gradually identify processes which can be automated without the need of human.
Combining point 3 above and the "automation theme" outlook, my money is with HEVEA in a long term horizons, without any doubt.
TQ tjhdog for ur views, but i think some of the data given by Jholow is incorrect, especially about the sales of shares by its directors. Kindly review the data...
Haha come this friday T4 on monday's big volume, all will lau sai. Yesterday's thin volume of 625,000 shares and today's tepid response (till now only 60,900 shares done) is already giving you signal to get out
In terms of shares price, both have risen from 1.17 to 1.30 within the same period. However, on 19/2 Hevea has touched an intraday high of 1.32 whilst Pohuat only 'touchNgo' 1.30 at the closing bell with few thousand shares done, a clear signal on the existence of a market maker or someone with an ulterior motive to close the stock high.
The traded volumes of both stock tell a different story. Pohuat shows a declining traded volume whilst Hevea is on an escalating traded volume trajectory. Please don't forget Hevea also has another Hevea-WB listed with an equally impressive traded volume, with 2,165,600 warrants traded just today alone. Moreover, Hevea has been trading with an average of >1m shares everyday since 28/1.
In summary, purely speaking on market observation ground, Hevea is definitely having more market participation by investors/punters alike than Pohuat. As a matter of fact, this morning's trading on Pohuat was very lukewarm before it finally picked up steam, when the sector leader Latitud put up an impressive show.
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....
heavyth
848 posts
Posted by heavyth > 2014-02-13 12:04 | Report Abuse
where is the support level..???