Haio seemed to defy gravity since January 2009. For financial year ending 30 April 2009, earning per share was 63 sen. For its first quarter ending 31 July 2009, earning per share was 22 sen. Net assets per share = Rm 2.21. Daily volume traded were not high, they varied from 500 lots (of 100 shares) to 3,000 lots. I suspect there are not many free floats in the market.The company has been buying back its own shares since early 2003. The last purchase was on 1st July 2009 at about Rm4.20. Treasury shares to date is about 4.8 million shares, which is about 6% of its total number of shares.
The Elliott's wave count until major wave (II) is quite clear. However, since January this year as shown below, there were only sub-waves degree of corrections. To be conservative, assuming major wave (III) consists of only sub-waves, Haio is currently in sub-wave vii. If major wave (III)'s magnitude is 1.618 times that of major wave (I), the target for (III) is about RM 8.20
A sharp and short duration pullback for major wave (IV) may bring its price to about Rm6.50. The final major wave (V) can reach Rm 10.00.Its last two quarter earning increased at a rate of 20%. Even if its earnings remain flat for the next 3 quarters, its 2010 annual earning per share will be 88 sen, which is very good. A stock worth keeping for long-term but wait for its major wave (IV) pullback.
No comments:
Post a Comment