Healthway Medical

At half day, Healthway Medical\'s trade volume exceeded yesterday\'s full day volume! We have a breakout on high volume! The resistance level at 13c has been taken out with a vengeance. Price touched a high of 14c before closing at 13.5c. If we have confirmation in the next session, a retest of 14.5c, the top of the earlier cup pattern is at hand. MACD has risen strongly above zero. MFI did a sharp about-turn, forming a higher low in the process. OBV continues to rise, indicating continuing accumulation. A restest of 14.5c seems very likely. If 14.5c is taken out, I see an intermediate target of 17c, followed by an eventual price target of 19.5c!

Healthway Medical had a spectacular breakout today on very high volume. Closing firmly at 16c, this is beyond the top of the previous cup formation at 14.5c. The relentless buying momentum towards end of the day looks set to continue in the next trading session. The intermediate target of 17c looks attainable. Eventual target remains at 19.5c. This is derived from measuring the trough to the top of the cup formation and projected forward. This is further confirmed by the Fibo lines. From a FA perspective, a price of 19.5c would mean a PE of about 17x which I believe is more than fair compared to Q&M Dental\'s PE of 37x at 60c! I have divested 20% of my position at 14.5c and 15c as a hedge. The rest, I am leaving to ride the wave up. To all fellow shareholders, congratulations! Chart: singaporeanstocksinvestor.blogspot.com/2...acular-breakout.html

AK71, great to see this health baby rocket today. I am still holding on... But i got a feeling that after the implementation of the rights issue, the dilution will most likely cause the price to revert back to the same 12c to 14c. Plus, it is likely to see selling after the rights issue since 7.5 cents is a huge discount and there will be some whom would want to take profit from the shares that they got from the rights issue. (Get it at 7.5 cents and sell it at 11-13 cents.. almost double... ) -> what do u think? Ultimately, for the price to sustain in the long run, still have to wait for its FY2009 report to look at its fundamentals. HW shld be doing reasonable well, i think, judging frm the heavy flow of patients tat i observe.

newbie123, from a FA point of view, Healthway is cheap relative to its peers in Singapore. Compared to Q&M Dental, it\'s dirt cheap. haha.. However, I also do a bit of TA which says that price action is all about sentiments. So, charts are supposed to be windows to the mass psychology of investors. People keep saying that Healthway will move to the mainboard one day and, guess what, I agree. However, that is the longer term. Believing in that longer term prospect of the company will not stop me from taking some profit today based on TA. Using TA, I hedge by selling some at each resistance level. Usually, it\'s 10% or 20% of my position per level. It depends on how big a position I have. So, 14.5c is the top of the previous cup formation while 15c was the last high. I sold some at these prices. The next resistance is 17c based on Fibo lines and candlesticks. I might sell some again. 19.5c, sell again. As for what is the price gonna be after the rights issue. Your guess is as good as mine. haha... I will cross that bridge when I come to it.

Being cheap may look attractive too. But then, if the market views it cheap, there could be a reason for it such as market viewing HW as a higher risk stock due to uncertainty in whether its expansion plans will take off... Agree now is the best time to stock up HW stock. Won\'t be surprised if there will be profit taking here and there. I just happen to have this feeling tat after the heavy selling due to the rights, the stock may go back to quiet again just like in the past few mths. Ultimately, i think whether the current price can sustain and appreciate reasonably with time will depend on the fundamentals. (i.e. whether the huge chain of specialists clinics it plans to open in Q4 2009 and Q1 2010 can succeed, whether its china expansion can take off etc) - whether it can show significant increase in revenue and profit... If cannot, all back to square one and become quiet again... As a whole, i think I am quite optimistic abt its expansion but again, noone can be 100% sure so I guess there\'s some form of uncertainty risks that we investors have to bear when we placed our money in growth stock. Will be excited to see how the price will be diluted after the rights issue... 5/6 of current price...??? AK71 wrote:

newbie123, from a FA point of view, Healthway is cheap relative to its peers in Singapore. Compared to Q&M Dental, it\'s dirt cheap. haha.. However, I also do a bit of TA which says that price action is all about sentiments. So, charts are supposed to be windows to the mass psychology of investors. People keep saying that Healthway will move to the mainboard one day and, guess what, I agree. However, that is the longer term. Believing in that longer term prospect of the company will not stop me from taking some profit today based on TA. Using TA, I hedge by selling some at each resistance level. Usually, it\'s 10% or 20% of my position per level. It depends on how big a position I have. So, 14.5c is the top of the previous cup formation while 15c was the last high. I sold some at these prices. The next resistance is 17c based on Fibo lines and candlesticks. I might sell some again. 19.5c, sell again. As for what is the price gonna be after the rights issue. Your guess is as good as mine. haha... I will cross that bridge when I come to it.

newbie123: 5/6? 3/4? 2/3? Haha.. You know, I wish I had a crystal ball but I don\'t. I am hedging my position. I always do. I will not maximise my gains but I will optimise. Good luck to us all.