Friday, September 15, 2017

Reassessment on Wood industry Hevea

On the last Blog,
https://edge2015.blogspot.my/2017/09/wood.html
it was said that mieco is much better than hevea due to small and potential to growth big.

on the recent post(15 sept 17) as below.

HeveaBoard Bhd is expected to have a fruitful year in 2018, with room for price adjustment for its products and better margin for its ready-to-assemble (RTA) furniture.

HLIB Research maintained its “buy” recommendation with unchanged target price of RM2.19. Its sensitivity analysis indicates that every 10 sen appreciation in ringgit against the US dollar will decrease Hevea’s profit by 11%, assuming a constant ASP.

On the chart wise,
we can see that after the news out Hevea started a sharp drop and side way.
and as of today gap up again due to HLB suddenly good review?
look at Mieco in compare the stock shoot up high after the news. and side way now.
it meets long term resistance. expect will remain side way for some time.

Conclusion
the research report will bring some impact on the price movement as it may influence some of the market sentiment, but to overcome shall have lead back to PE and valuation and prospect for future.
do not take all words from research house as true as they always change from time to time.

 Hevea as of 15 sept 17
Mieco as of 15 sept 17

1 comment:

  1. I agree when any news come out relate to that company, market price will be big fluctuation, either good news or bad news.

    Research house reports only for reference, they publish to earn, not direct let us earn money, as always said, cari makan susah.

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