Author Topic: Buy Chinwell now  (Read 223 times)

Offline daffy

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Buy Chinwell now
« on: March 10, 2016, 11:31:37 AM »
Profit taking now but will come back up again.     168 now....seen in another forum HL buy cal.........lFounded in 1988, Chin Well is one of the largest fastener manufacturers in the world, with production facilities in Penang, Malaysia; and Nhon Trach District, Vietnam. Chin Well manufactures a comprehensive range of screws, nuts and bolts, which it supplies to global customers in various industries including power, land infrastructure and Do-It-Yourself (DIY) sectors. Chin Well has established strong distribution networks in the domestic and international markets, with its fasteners exported to Europe and South East Asia.
The stock is extremely oversold following a plunge in share price from high of RM2.34 on 7 Jan 2016 to RM1.60 (near daily FR level of 61.8% and weekly FR level of 50%). We expect share price to gain buying momentum in the near term as two bullish revers al patterns , ‘Morning Hammer Star” and “Hammer” patterns on daily and weekly chart respectively, have triggered a reversal sign.
As such, we are targeting RM1.82 (daily 50% FR), RM1.94 (daily 38.2% FR) and RM2.09 (daily 23.6% FR). Supports are pegged at RM1.69 (daily 61.8% FR) and RM1.63 (200-d SMA), with cut loss at RM1.60.
Attractive risk to reward ratio with 21% upside against 7% downside. We see a good risk to reward ratio for investor with a theoretical entry price of RM1.72 given that the downside to the cut loss zone of RM1.60 is 12 sen (-7%) while the upside to the LT target of RM2.09 is 37 sen (+21%).
Source: Hong Leong Investment Bank Research - 10 Mar 2016