I admit that HX is very attractive. However, if you look at the Hk side, its competitors have moved by leaps and bounds. With market share eroded, I think it is a possible value trap when the business starts to become a cash burner, evident from 2009 where it sold inventories at such steep discounts. Anyone with new insights or information to enlighten the uninformed me please post a reply. Thanks!
Closing at 15.5c, it formed a gravestone doji as price touched a high of 16c today. Although it is a gravestone doji, I think it more positive than negative here as price did not touch 15c the whole day. This means that, for the first time since 26 January, China Hongxing managed to trade at or above the 50dMA the whole day. The MACD continues to rise and seems to be sneaking a peek above zero, heralding a return of positive momentum. However, volume is anaemic and this will have to expand for a convincing move up. Chart:
singaporeanstocksinvestor.blogspot.com/2...ief-20-april-10.html
Price declined on very much higher volume today to close at 14.5c. The MACD turned down and seems poised to form a bearish crossover with the signal line. This negated the buy signal seen yesterday. All the momentum oscillators have swung down. I might cut loss on Monday.
OBV down. MFI down although not oversold yet. MACD formed a bearish crossover with signal line and is beneath zero. Volume expanded enormously on a black candle day. The lows of 27 April and 23 June 09 which were at 12c might soon be tested if the selling momentum persists.
The news wasn't picked up but it is good news still. And I wish to publicise it -- the terrible CEO has to go. Wu has to go after the missing money scandal. It's time for a new CEO. His departure is imminent -- Hongxing has buried the news in a long press release a few days ago.
The chinese of China are terror when it comes to swindling. No auditor can find out or dare out right declare their facts and findings without qualification!!
I bet you they will get away with this but the CFO is going to jail for not uncovering the problem earlier to the bod. Bod if they ever reside in USA jurisdiction will be sue to bankrupt but this Spore. Your friends never get into trouble if the law knows you - haaahhaa!
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