Sell HAIO again?

Today HAIO price further dropped since my last blog on it. I called up my broker, again, nothing much information i could get. I decided to sell half of my HAIO portfolio as technical indicator showed a lot of sell activity. I am still believe it's fundamental is quite solid. Should not be any accounting manipulation. And so far, the reason i sold it is for 2 reasons:
1. prepare buy back at lower price
2. raise fund for my right issue ;)

Sell HAIO?

Today HAIO stock price dropped significantly again. I bought in at RM3.5 2 days ago and today it was at ~RM3.3 translate to 6% lost for me. And my entire HAIO portfolio gain drop significantly as well. It wrote off about 55% of my gain. Should i still hold this position? is my Buy Hold strategy broken? One of my broker told me that investor were speculating some accounting fraud in HAIO after share split. I think if this true, it is very serious. Any way to detect accounting fraud? I think with my current CFA knowledge, i am still not able to detect this... share with me if you know anything about this.


 

HAIO surges after earning report? Fundamental, technical or hybrid analysis for HAIO? RHB, Affin or OSK for HAIO? Buy Hold for HAIO?

Shares of HAI-O ENTERPRISE BHD surged in early trade on Wednesday, Dec 23 after it reported a strong set of earnings. It was up 42 sen to RM7.92 at 9.15am. There were 106,500 shares traded. However, the 30-stock FBM KLCI fell 1.84 points to 1,258.58. There were 28.73 million shares done valued at RM32.25 million. Hai-O reported net profit of RM20.18 million in its second quarter ended Oct 31, a jump of 85% from RM10.89 million a year ago, as more consumers bought its health and wellness products. The company said revenue rose 51% to RM132.37 million from RM87.29 million. Earnings per share were 24.23 sen compared with 13.38 sen. It declared dividend of 10 sen per share. It also proposed a bonus issue of up to 16.89 million new RM1 shares on the basis of one bonus share for every five existing shares held. It also proposed a share split involving the subdivision of each Hai-O share into two 50 sen shares.

Let me share some analysis report done by different Investment Bank.
RHB Research Institude Sdn Bhd.
Date: 12/23/2009
Share Price: RM7.5
Fair Value: RM9.9

Affin Investment Bank.
Date: 12/23/2009
Share Price: RM7.5
Target Price: RM11.06

OSK
Date: 12/23/2009
Share Price: RM7.5
Target Price: RM8.95

Technical Analysis:

Base on the report from 3 different expert, valuation result showed 3 different target price with RM8.95, RM9.9 and RM11.06. HAIO was traded between RM8.37 - RM8.83 on 12/31/2009. From the technical, it showed very bullish for HAIO. But is it too late to enter the market? Dear investor, are you able to make some wise choice?