Healthway Medical

Fundamentally, I do not see a compelling reason rooted in the present to increase my investment in Healthway Medical. Technically, the counter might provide trading opportunities and I have identified 17.5c and 21.5 as the resistance levels to watch. 13c should be a strong support level. Good luck to all fellow shareholders. singaporeanstocksinvestor.blogspot.com/2...dated-valuation.html

HW\'s full year result is out. Revenue jumps 21.8% to S$98.6 million Net profit increases 59.5% to S$15.2 million Performance improves in both business segments

I zoomed in on the EPS figure which reduced from 1.32c per share (end Dec 08) to 1.12c per share (end Dec 09). This figure is telling as it is one of the ways I arrive at the fair value of a company\'s shares. Even though the revenue and profits have improved impressively by 21.8% and 59.5% respectively, year on year, EPS is still being diluted at a faster rate with all the new shares being issued. So, the updated valuation I did on 24 Feb here in my blog for Healthway Medical is valid, together with all my concerns. singaporeanstocksinvestor.blogspot.com/2...dated-valuation.html

Hi. Anyone going tmr\'s EGM for Healthway?

Although the MFI has been forming lower highs and lower lows, the malaise has been accompanied by decreasing volume. So, there is no heavy selling. Rising 20d and 50d MAs are at 16.5c and 16c respectively. It remains to be seen if the price action will respond to these two MAs or will it respond more to the 100dMA like what happened in mid-February. Remember that low volume does not mean that price cannot drift lower. This is quite evident in the price decline which happened from 26 Jan to 12 Feb on declining volumes. The 100dMA is currently at 14c.

Price broke resistance and touched a high of 17.5c before closing at 17c, the resistance provided by the declining 20dMA. Volume expanded and it seems that the MACD might do a bullish crossover with the signal line. MFI has formed a higher low, suggesting a return of buying momentum. OBV has turned up. All these are providing hopeful signals to people who remain bullish on Healthway Medical in the short run. Another chance to sell at 18.5c, perhaps?