KUALA LUMPUR (Sept 21) – The share of Ho Wah Genting, which dealers said has returned to the radar screen of speculators this week, rose in early trade today following a technical analysis that it should trade within 31sen-36 sen per share after yesterday’s rebound.

At 9.49 am Friday (today), the fifth most active stock rose 2.5 sen or 8.2% to 33 sen after rising to a high of 33.5 sen in early trade, on trades of 5.38 million shares.

“This is one of the favourites of market speculators. But many people are not aware that its net value per share is actually far below its trading price,” said a senior remisier following penny stocks.

A technical analysis published on the lead business page of Nanyang Siang Pau stated that Ho Wah Genting is set to rise further after rebounding 2 sen to end at 30.5 sen yesterday.

It added that the stock should enter a short rebound phase with prices ranging from 31 sen to 36 sen.

But on the fundamental side, the company incurred a net loss of RM2.21 million for the second quarter to end-June 2012, compared to a net profit of RM6.24 million in second quarter of 2011.

Its net asset per share at end-June was 16 sen, down from 19 sen in June 2011, according to the company’s filing with Bursa Malaysia.

The group's principal activities are said to be in the manufacture of moulded power supply cord sets and cable assemblies for electrical and electronic devices and equipment. Other activities include the operation of hotel, casino, resort, entertainment and leisure activities.

What you see is what you get.
I might and I might not have a trading position in stocks I post.
Trade smart!

http://www.theedgemalaysia.com/in-the-fina...to-grow-25.html

PETALING JAYA: Poh Kong Holdings Bhd expects its revenue for the financial year ended July 31, 2012 (FY12) to increase by 25%, buoyed by higher gold price, increase in sales from new outlets plus sales growth in the existing outlets nationwide, according to the group’s executive director Ermin Siow.

“Our revenue increase from 2010 to 2011 was fuelled by the higher unit price of gold in 2011 compared with 2010. However, average gold price this year is actually lower than the peak that we saw last year, but we still see double-digit growth in sales this year.

“High gold price is not the only factor that boosts our sales revenue, the opening of new outlets and growth of sales at existing outlets also help,” said Siow during a media briefing on world gold demand and Malaysia’s Gold Industry Trends 2012 yesterday.

Poh Kong’s revenue came in nearly 10% lower at RM625.4 million for the nine months ended April 30, compared with RM692.5 million in the previous corresponding period.

Siow anticipates the average gold price for 2012 at US$1,731 (RM5,280) per ounce. However, some analysts who are tracking the commodity are forecasting gold price to reach US$1,920 per ounce by the end of the year, fuelled by the low interest rate environment in the US and loose monetary policy in Europe.

The announcement by US Federal Reserve chairman Ben Bernanke that the central bank will embark on the third round of quantitative easing (QE3) will also help spur demand for gold, as the precious metal is seen as a safe haven when the US dollar and other fiat currencies are weak, said Siow.

“We expect gold price to continue to be bullish until at least 2015, as the Fed decided to keep interest rate in the US at ultra low level until at least that year. As the US dollar gives out lower return, investors will shift their investment to gold,” he said.

During the briefing, Siow revealed that gold demand globally for the 12-month period ended June 30, 2012 was at 4,455.8 tonnes, an increase of 4.7% compared with the same period previous year.

Out of the total, about 41.2% is in the form of gold jewellery, while investment in gold forms the second largest type of demand at 37.5% during the period.

According to Siow, demand for gold in the form of jewellery has actually decreased by 13.2% during the 12-month period ended June 30, 2012 compared with the corresponding period a year ago.

This is, however, offset by the 14.4% increase in demand for gold investment product during the period as compared to the corresponding period previously.

If this trend continues, it is surely a concern for gold jewellery retailer like Poh Kong. Siow said about 10% of Poh Kong’s sales are in the form of gold investment products, while the rest constitute jewellery.

“As the price of gold increases, less people will incline to buy gold as personal ornaments. We are concerned that gold price might reach a level where people find it too expensive to buy,” said Siow.

Since the start of the year, gold spot price has increased by 13.54% to US$1,778.15 per ounce. This is about 6.8% lower than the all time high of US$1,900.23 per ounce on Sept 5, 2011.

Despite the anticipated upward trend of gold prices, Poh Kong and its listed peers are still trading at low valuations.

Poh Kong, which is the largest of the three public listed gold jewellers in Malaysia by revenue, is trading at about 3.7 times its historical earnings. The other two gold retailers, Tomei Consolidated Bhd and DeGem Bhd, are trading at about 3.9 times and 5.5 times historical earnings respectively.

It's CURRENTLY stock of the year lah.



I think the chart is very 'managed' lah.

Jaga sikit.