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?

Citigroup buy or not buy? Technical Analysis on Citigroup? (PART 2)

I posted an article about some technical analysis I applied on Citigroup stock a few weeks back (http://ilearn2invest.blogspot.com/2009/12/citigroup-buy-or-not-buy-technical.html). Citigroup share price dropped significantly due to the TARP repayment announcement. Below was the summary i put in one of my comment before.

Citigroup Inc. announced the pricing of 5.4 billion common shares and 35 million tangible equity units as part of agreement with the U.S. government and its regulators to repay U.S. taxpayers for $20 billion government holds in TARP trust preferred securities and to terminate loss-sharing agreement with the government. The common stock priced at $3.15 per share, generating net proceeds of approximately $17 billion. Tangible equity units priced at $100 each, generating net proceeds of approximately $3.5 billion (about $2.8 billion counted as equity.) Upon completion of the offerings and the repayment of the $20 billion of the TARP trust preferred securities and the termination of the loss-sharing agreement, Citi will no longer be deemed to be recipient of exceptional financial assistance under TARP. The U.S. Treasury (UST) announced it would extend its lock-up period on the sale of its 7.7 billion share common equity stake to 90 days from 45 days after the completion of this offering. The tangible equity units are comprised of prepaid stock purchase contract and junior subordinated amortizing note. Each stock purchase contract has settlement date of December 15, 2012 and will settle for between 25.3968 and 31.7460 shares of Citi common stock, The amortizing notes will pay holders equal quarterly installments of $1.875 per amortizing note, which in the aggregate will be equivalent to 7.50% cash payment per year with respect to each $100 stated amount of tangible equity units.


From the last technical analysis on Citigroup, the result showed it was trending down (12/14/2009) and no up trend signals. The summary was to keep waiting for a few more days. Let us review on the stock price base on technical analysis today (12/31/2009).

Citigroup - 3 months

There was some up trend in the signal on 12/31/2009. Current support level was ~USD3.2; resistance was ~USD3.44 for the past 2 weeks. Could it be any consolidation before a breakout trend? Dear investor, are you in or out?