Healthway Medical

Here it comes: A renounceable underwritten rights issue of up to 276,950,596 new ordinary shares at an issue price of S$0.075 for each Rights Share on the basis of one (1)Rights Share for every five (5) existing ordinary shares. The Company intends to utilise the Net Proceeds for the following purposes: (i) S$12.0 million to invest in medical centres in China and for general working capital purposes as the Group expands its operations in China; and (ii) the balance of S$7.8 million will be used for general working capital purposes. Today\'s announcement: info.sgx.com/webcoranncatth.nsf/VwAttach...1209.pdf?openelement

And I was just saying 2 days ago that we have to be prepared to dig deeper into our pockets. I prefer rights issues to share placements. The former at least allow existing shareholders to have proportional participation in the enlarged capital base of the company. The money raised this time will mostly go to expansion plans in China. I like the Chinese RMB and believe that it will appreciate in value in time. Having a business platform in China making RMB is music to my ears!

It is clear to see from the declining MFI that Healthway\'s price lacks buying momentum. Price is currently at 12c, midpoint of a cup pattern formed from June to August this year. The brim of the cup is at 14.5c and the trough at 9.5c. A cup and handle formation is usually an uptrend continuation pattern but this handle is too long. The 20dMA, 50dMA and 100dMA have all bundled above recent price action and impose resistance at 12.5c. Support is provided by the rising 200dMA, currently at 11c. With the proposed rights issue and a TERP of 11c, the support provided by the 200dMA might be tested in time. However, volume has been diminishing with the declining price. There is no negative divergence and I do not foresee any drastic price decline. Charts for Healthway: singaporeanstocksinvestor.blogspot.com/2...althway-medical.html

Healthway Medical has a white candle day on increased volume. Closing at 13c, it is still resisted by the flat 100dMA. We have a buy signal on the MACD today as it seems set to cross above zero. OBV has turned up sharply, indicating accumulation. MFI is still declining which indicates a lack of short term buying momentum. Still rising 200dMA at 11c limits any short term downside. On the weekly chart, the increased trading volume is plainly obvious as price action formed a white hammer. OBV has formed a new high. A buy signal on the MACD was first seen last week. MFI has turned up sharply indicating that buying momentum on a weekly basis has strengthened. A retest of 14.5c will probably take place if the resistance at 13c is taken out. Chart: singaporeanstocksinvestor.blogspot.com/2...ical-and-golden.html

Investor from here on will probably be a bit cautious. The days of easy, fast money, to make a quick buck scenario is probably not going to happen in 2010. Singapore general election may be held after National day 2010 (guessing and not confirm). From January 2010 to August 2010 still can make some monies. Healthway Medical is a defensive stock with business growth in China. There will be 4 clinics at Shanghai at the end of 2009. Big expansion in China until 2015. We will have to watch the next 6 months when it is likely to be promoted to Mainboard SGX. If M&A investors come in, or if got dual listing, your investment can be double or triple. Be patient, slowly and steady will win the race like tortoise. Remember tortoise have a longest life. Those who bought healthway medical --- hold on for another 6 months Good Buy at 13 cents. Buy now and hold it for next 6 months with right issue 5 for 1 at 0.75 cents.

True. Agree with what you say, Stephen. Was thinking about the possibility if GenRX Healthcare (the HK listed company that holds healthway Philippines and some HW clinic in china) and the healthway Medical could do some form of merging... If so, it would be an unstoppable medical superpower in Asia... STEPHEN YEO wrote:

Investor from here on will probably be a bit cautious. The days of easy, fast money, to make a quick buck scenario is probably not going to happen in 2010. Singapore general election may be held after National day 2010 (guessing and not confirm). From January 2010 to August 2010 still can make some monies. Healthway Medical is a defensive stock with business growth in China. There will be 4 clinics at Shanghai at the end of 2009. Big expansion in China until 2015. We will have to watch the next 6 months when it is likely to be promoted to Mainboard SGX. If M&A investors come in, or if got dual listing, your investment can be double or triple. Be patient, slowly and steady will win the race like tortoise. Remember tortoise have a longest life. Those who bought healthway medical --- hold on for another 6 months Good Buy at 13 cents. Buy now and hold it for next 6 months with right issue 5 for 1 at 0.75 cents.