Dow - Major Wave (IV) to be confirmed

For Dow to confirm wave (IV) the technical indicators have to move to the upper level and move side way at the top. However, if the indicators fail to reach the top and start to turn down again and if they remain at the bottom and move side way, then the pessimistic Big C scenario is taking place. To be confirmed

An optimistic wave count is as shown above where Dow is in its last journey of its wave (IV).

If Dow has no danger of the big 'C', Latitude Tree Holdings Bhd. can be a stock to watch. It specialises in the manufacturing and sale of wooden household furniture. 99% of its products are exported to US, Japan, Canada, Europe, Australia, Middle East, South Africa....... 90% of its raw materials are rubber woods. Since its announcement of its First Quarter Result of 17.2 sen per share in November due purely to an increase in both revenue and profit margin and contributions from its two factories in Vietnam (there was no extraordinary item or one-off profit), its stock price has moved from Rm 1.10 to last Friday closing of Rm 2.27. One of its possible wave count is as shown below. It is possible that Rm 2.10 is the sub-wave (vi) and its sub-wave (vii) has just started.

Its quarterly earnings and revenues since 2007 is as shown below.

Latitude is about to report its second quarter ending December 2009's result before end of February, if it can get an earning of 17 sen and above for its second quarter, it may be possible to get an overall 60 sen to 70 sen per share for the whole year, under such a strong earning per share, its stock price should move to Rm 4 to Rm 5 level.

This is chan bobo with its Chinese New year look.