Short update on Suga Int. (2012-03-06 0912 analysis)

The index plunged yesterday, and it seems like it is still not able to break out the resistant zone yet. Today let's have a short update on the small-cap stock I mentioned before (0912.HK).
















The stock price reached the level 2.12 mentioned last time, and is not able to surge further. It should be going down and reach the up-trend line support at around 1.90. And it will be in this range for a while, let's keep an eye on whether it could break out a lot.

Small-cap stock with nice chart (2012-02-09 0912 analysis)

Haven't been updating small-cap stock for quite a bit. Above is the daily chart of Suga International Holdings Ltd. (0912.HK). The chart looks pretty nice with a nice break out of flag, and next resistant of around 10% above the current stock price.

Profits in short period (2011-07-27 Wing Hing International (Holdings) Ltd. analysis)

Above is the daily chart of Wing Hing International (Holdings) Ltd. (0621.HK). The group's main works are the operations of coal mines and leasing of mining licenses in the People's Republic of China (the "PRC") and sale of mineral products. (from http://aastocks.com)

Starting from few years ago until 2009, the stock had been moving sideways and had extremely low volatility. In 2009 to beginning of 2010, the price boosted. Especially in 2010, it is quite obvious there corporate investors were trying to lift the price.

Nevertheless, when the price reached 0.50, the stock started to move sideways again. This was because 0.50 is an important boundary, spread widens and it takes more time and money for those rich investors to bring the price up.

While we might suspect that shares were being dumped after the rise in early 2010, recent movements proved the opposite.

In April 2011, the price rocketed to as high as 0.81. Obviously, rich investors were still holding their shares, and they would like to find out how large the selling force is at the high. This is to prepare another crazy surge in near future.

This time the price will break 0.81 and could reach 1.0, which is another spread boundary. And this stock is good to buy as it would probably give you more than 40% profits in less than one month.

But again, remember to set stop-loss for such kind of stock.

Look more bearish (2011-07-19 0716.HK)

Above is the daily chart of Singamas Container Holdings (0716.HK). It primarily focuses on manufacturing containers and providing logistic services.

Recently the stock price has been surging greatly along the green up-trend line which is quite steep. This line provides support to the price.

On the other hand, the red solid line is the resistant stopping the price from going any higher.

Now we can see that the price has moved to the interception of the two lines, which means that it would have to break either side.

Support is at 3.30 and resistant is at 3.42. If it breaks out, then of course we can buy this stock. If it goes down instead, then we can short it.

Apart from the flag shape, the stock price was resisted at 3.50 twice. This might possibly be a bearish flag signaling bearish continuation. So going downside is more likely then rising this time.

Small-cap stock again (2011-06-15 1043.HK analysis)

Above is the daily chart of Coslight Technology International Group Ltd. (1043.HK).
The principal activities of the Company and its subsidiaries are research and development, manufacture and sales of rechargeable batteries and battery related accessories. (source: http://www.aastocks.com)

On the chart, we can see that the stock was moving within 4.24 and 4.80 for a few months before plunging hardly to below 3. The range is definitely a resistance zone.

However, according to my observation, it seems like the price would be lifted again by corporate investors. Large drops from March to May gave us hints that corporate investors might want to frighten the retail shareholders off so they can hold more shares and it would be easier for them to push the price upwards.

The red line is a long-term down-trend line which acts as resistant now. If the price could break out, together with my expectation on breaking out of 4.24 as well, the stock price would reach 4.80. This level is a strong resistance due to the fact that many retail investors might have bought within the range in last Oct to Feb this year.

So this stock is probably worth putting under watch-list, breaking out means a good buy signal.

Quick profits (2011-06-10 Tanrich Financial Holdings analysis)

Yesterday HSI was down again, but wasn't too much. We could see there was a strong buying force at around the support.

So is there any opportunity for quick money?

Daily chart of Tanrich Financial Holdings (0812.HK):


The principal activities of the Group comprise: wealth management, brokerage and margin financing, insurance agency, corporate finance, asset management, money lending, and proprietary trading. (from aastocks.com)

Starting from last September, this stock has surged from around 0.3 to almost 2.0 today! It's a great boost, isn't it?

However, following the long white candle yesterday, it attracted my attention to see whether it could keep its up-trend.

We can see that the price breaks the previous high, and closed at the high. This signals an extremely strong bullish force for the stock.

This might be a chance to grab some profits. If corporate investors who hold lots of shares want to push the price upwards, the price should at least be higher than the previous high for around 10%. But the risk is that they are going to sell after a sharp push, so we have to be absolutely careful. Set a stop gain, and leave quickly.

Good luck.

Another Small-cap Stock (2011-05-18 Dynamic Energy analysis)

Above is the daily chart of Dynamic Energy Holdings Ltd. 0578.HK. This company mainly produces and sells coal in China.

From the chart, we can see that starting from December 2010, after 4-month suspension because of operations sales (which was announced unsuccessful), the stock price has been rising crazily from 0.33 to as high as 0.74.

Fundamentally, the main reason would be the rise of coal price and its continuing operations of the coal mines. But I guess the best explanation would be some corporate investors are "playing" with this stock. It is shown by the abnormal large volume when compared to that before suspension.

0.33 to 0.74 there is around 124% gain. Would these guys be satisfied? Probably Not. They have spent over a year to collect stocks, and there was even news popping up. Having done a lot, would these investors be willing to let go for just 124%?

Another good signal would be the doji in last April, followed by a trading day with extremely huge volume. The doji would probably be a fake signal asking retail investors to sell (fake evening doji). Then, on the next day, the corporate investors continued collecting more shares.

Therefore, I would expect further rise of this energy stock. The price now is 0.72, and 0.74 would be the next resistance. If it breaks out, we should buy without hesitation.

Of course, remember to set a stop loss level when "investing" or speculating these kinds of small-cap stocks.

False Double-top? (2011-05-04 0305.HK analysis)

Above is the daily chart of Dragon Hill Wuling Automobile Holdings Ltd (0305.HK), which is a small-cap stock priced 1.09 currently.

Yesterday this stock surged 5.83% which caught my attention. I analyzed it and found somehow interesting result.

From the chart, we could see that starting from mid-March, the stock price has been rising from 0.87 to around 1.16 in early-April. Then a double top was formed.

Last week, led by the poor markets, 0305.HK dropped below trough level. We might have thought about shorting the stock at this point; however, yesterday it managed to get back above this level which showed a potential bullish signal.

The price is still been limited by the 20day Simple Moving Average. If it breaks this resistance, we could expect it to reach 1.16 without difficulty, which is around 5% rise.

Of course we are not looking for such a little gain. Therefore, we have to observe whether the buying-power is strong enough to break the double top level as well.

If so, 1.30 is expected. This level would be the next resistance.

Tracing back in the past (late October), the stock blew off from around 0.65 to 1.6, which was around 146% surge. Interestingly, the price stopped rising there and started sliding down, but I think that there was no obvious evidence on distribution stage.

Therefore, another blow-off might happen again. Let's just put this stock in our watch-list.

Narrow trading range (2011-04-27 3823 analysis)

Above is the daily chart of Tech Pro Technology Development Ltd. (3823.HK). The Company and its subsidiaries are principally engaged in the manufacture and sales of aluminium electrolytic capacitors and V-chip type aluminium electrolytic capacitors. http://www.aastocks.com>

By technical analysis, we can see that the stock price was in trading range for three months, after a pass-through of the red triangle (there was no breakout).

The trading range is around 1.70-1.85. These two levels indicate the boundaries which resist/support the stock price.

We can see that there were a few candles with long lower shadow recently. The price is still beautifully kept within the range, but the long lower shadow implies that the buying-force is quite strong here.

If the price breaks out 1.85, the surge of price could be extremely great. We can keep an eye on this stock.

Jumping stock? (2011-03-29 0982.HK analysis)

Above is the daily chart of Ione Holdings (0982.HK). This stock surged 15.2% yesterday which attracted my attention. And I discovered its potential to jump.

The price has been sliding along the red down-channel for months. Though it did try to break the channel several times, I didn't see volume accompanying.

This time, however, volume rose as well, not only yesterday but also last week. It seems that corporate investors started working on it after collection period.

Outbreak of channel would be the very first step. The next resistance will be at 0.2. Potentially it could move up to 0.3 or even 0.5.

For the downside, the support level is at 0.119. However, for such stocks, setting certain percentage stop loss would be better to wait for support as liquidity is not high.

Stock in the week! (2011-03-24 Morning Star Resources Ltd. analysis)

Sorry I had a mid-term examination yesterday morning, that's why I wasn't able to update my blog. Just for a brief update, these two days HSI had a low volatility due to the fading Japanese Earthquake's impact.

Today I am going to post the analysis of a small-cap stock, with potentially high chance of crazy surge: Morning Star Resources Ltd. (0542.HK). I believe some of you might have already heard about this company as it is quite well-known among the travel industry. But its major activities are actually investment holdings and management. (source: http://www.aastocks.com)

Below is the daily chart of Morning Star.



Yesterday the stock price surged 34.4%. This was actually an extremely beautiful breakout as it just reached the long-term red down-trend line. It's a shame that I did not discover this stock before yesterday's break.

Anyway, there is still chance for making money. 34.4% is definitely not enough for those who intend to push it. In fact, when reaching level around 0.128, there was a strong resisting force and stopped the price from boosting further, creating a long upper shadow.

Support now will be at around 0.101. For the upside, should Morning Star break the resistant level at 0.128, it could reach as high as 0.199. And this is only the second stop. Potentially it can even surge to 0.26 and even 0.30.

But let's just focus on shorter term. If the price exceeds 0.128 and stays firmly above it, we could BUY this stock and target at around 0.20. This is around 56% gain.

For stop, I would recommend 10%, which is at around 0.115.

I will consider putting this stock into JPHK after a long time of cash-holding period.

Small-cap stock (2011-02-17 Interchina Holdings Co. Ltd. 0202.HK analysis)

Above is the daily chart of Interchina Holdings Co. Ltd. (0202.HK). It surged around 7% yesterday which made me put some attention on the stock.

For the fundamental, the Company and its subsidiaries are principally engaged in (i) environmental protection and water treatment operation, (ii) property investment operation and (iii) securities and financial operation. (from http://www.aastocks.com)

I found that it is currently testing the upper line of red wedge. After breaking out, it would have another crazy boost again.

In terms of corporate investors, obviously they were buying shares at around the green wedge before. Average price was at around 0.86. The price of the stock is now 1.4, which is not even double of the buy-price of these investors.

I expect that the stock price will keep on rising in the near future to let corporate investors get bigger room of profits.

Small-cap stock (2011-02-10 Mainland Headwear Holdings Ltd. 1100.HK)

Above is the daily chart of Mainland Headwear Holdings Ltd. (1100.HK). The principal activities of the Group are manufacture and sales of headwear products, sales of licensed products and tourist-souvenir products. (from http://www.aastocks.com)

After maintaining the level of around 0.85 for over a year, the stock price suddenly surged greatly in late November 2010 to as high as around 1.72.

Obviously, corporate investors are holding this stock and would like to make fast profits from it. They have pulled the stock price upwards. However, they could not sell all the shares in such a short time.

Furthermore, 1.72 is just about double of 0.85. Those investors would not be satisfied with such small profits. They will definitely try their best to raise another wave to maximise their profits.

I would expect the price will be up to at least 1.72 first. Then if it breaks, around 2.55 will be next target.

Still some waves to go (2010-12-10 0915.HK analysis)

The index rose yesterday. So its really hard to predict the movement of HSI these days, but it is forming a head-and-shoulder pattern. Please remind that the neckline is at around 22,750 and if the index breaks it, the plunge will be very huge.

Anyway, before facing such a bearish market, we can try to dig some good potential small-cap stocks for short-term trading. I discovered one: LinMark Group 0915.HK



After breaking the red pennant, the stock surged crazily in late November and early December. We have missed this chance already. However, I think there would be a second wave coming.

First reason is that the stock did surge greatly in Jun10. Then during the plunge afterwards, the volume was not high. Corporate investors clearly were not selling their shares. They should be collecting and preparing for pulling the price to a higher level.

Therefore, after few months of consolidation, the price boosted again in late November. It is now moving towards 0.76. This is the first resistance level. The next one would be 0.87 which is the highest point.

But I expect that the price would go further than 0.87. I have thought of one opposing reason is that corporate investors were selling the shares during the consolidation period slowly, and lifted the price again to sell more in higher price.

However, the stock has been in this range since late 2009. I could not see much profits for these big investors. They would definitley require more profits for such a long time. Therefore, they would continue lifting the price upwards.

Huge Waves (2010-12-07 3303.HK analysis)

Well, HSI kept on moving upwards. Make sure you are aware of the next resistant level at around 23,700.

Today I suggest another small-cap stock to everyone which definitely worths your attention.

Daily Chart of 3303.HK Jutal Oil Service:


Jutal is a chinese phrase meaning "huge waves". Anyway, the Group is principally engaged in provision of technical support and related services for oil and gas industry and sales of equipment and materials, fabrication of oil and gas facilities and oil and gas processing skid equipment, provision of technical support services for shipbuilding industry and engaged in civil engineering business. --- from http://www.aastocks.com

As we can see on the chart, the price of 3303.HK tried to break the level of 1.18 twice but failed. Here comes the third trial. The big surge yesterday led the stock to break the red uptrend line, and move closer to the level of 1.18. This is a critical level, if it can break this, I will expect further boost to 1.37.

However, the volume was too great yesterday. Those who are optimistic on it might have spent too much on it which give less power for it to further rocket. The support will be around 1.12 which is the red uptrend line.

If it breaks 1.18 level and closes above it, I would add it into JPHK. Why not catch the huge wave created by this "Huge Wave"?

Take a ride (2010-12-03 1229.HK analysis)

So the index surged another 200 points again yesterday, and my anticipation on the market this week was wrong. DJIA and HSI both break the 50-day Simple Moving Average, and SSEC is moving close to it.

Many small-cap stocks rose crazily these days, so its time to find any chance to make profits in short period. I found today a good small-cap stock: 1229.HK China Sonangol

This stock surged over 10% yesterday, and you might feel bad with it. But I do think the boost creates opportunity for it to climb even higher.

Let's check the daily chart of 1229.HK



Clearly, the price was brought to the resistance level 1.688 yesterday, and it is now critical time on confirming whether it would break or not. If the price breaks this level, theoretically the next resistant is at 1.827.

However, I would predict a further break up to around 2.2.

On 22-Sept, the price went up to as high as 1.80. Then due to strong selling power, it could no longer stay there and plunged. Clearly corporate investors were trying to test the resisting power at that level due to the shares bought by retail investors in June to August. If they are not going to lift the price, they would not have such action.

And these two days the volume was surprisingly high. The price broke all the 10,20,50-moving averages with only two candles, and together with the high volume, the momentum for this stock is large. This would definitely enhance the rise of the stock.

Therefore, if the price breaks 1.688 tomorrow, it has great potential to give you more than 15% in few days.

Famous brand's unpopular stock (2010-11-19 Crocodile analysis)

Today I will talk about a small-cap stock: 0122.HK Crocodile. The brand is of course nothing small, as Hong Kong people we should have heard of it since young. But its stock is definitely not a famous one.

Crocodile has been fluctuating quite a lot these few days, following the world's volatile market. 0.74 has been its resistance for long, and it could hardly break it. However, few days ago it once broke the resistance, but finally failed and dropped back below the line.

Given the shrank volume when it dropped from 0.74 last two times, and the trial recently, I would expect a breakout. If breakout confirms, it is hardly to predict its stop, so what we have to do is to keep track of it every day and read the tape to see whether the corporate investors are selling or not; or if you want, you can set a limit order such as 30% profits.

Take a ride? (2010-11-02 Mayer Holdings analysis)

These days the stocks in Metal & Steel industry often surged quite a lot, so I have checked some of the members in this industry for any possible profitable trades. And I found it, Mayer Holdings (1116.HK).

The Group is principally engaged in manufacturing and trading of steel pipes, steel sheets and other products made of steel, property investment and leasing of aircrafts. With the China government pushing the property industry, more buildings are built and more steel are needed. This is one of the factors supporting this stock.

But anyway, let's get back to technical, or candlestick to be specific:



Above is the daily chart of Mayer Holdings. This stock has been moving in a trading range for a long time, though there were a few trials of breakout/breakdown.

One thing to mention is that the price reached its resistant area in early October. This is why I think that the stock still has rooms for further rise. If corporate investors were selling their shares after the jump in mid 2009, the price could hardly been pushed upwards. This might be a signal telling us that corporate investors were trying the strength of resistant at this level, and are preparing to break it.

The immediate plunge following it showed that the resistant power at that level was very great. Nevertheless, retail investors would try their best to sell their shares when the price finally climbed up back to their buying level.

The price just fell back to the bottom line of the channel. It is a good time for us to buy this stock. First, just dont' care about whether it will break 0.78 or not, the price could easily get back to somewhere at 0.70 as it is moving along the channel. Price now is 0.55 and the return is pretty cool.

If the resistant area breaks, then 1.00 and 1.25 would be the next two resistant levels to watch. Ready to take a ride again?

One more to add into watch-list (2010-10-28 Alltronics Holdings Ltd analysis)

Well there is another stock which worths putting under your watch-list: Alltronics Holdings Ltd. (0833.HK). The principal activities of the Group are the manufacturing and trading of electronic products, plastic moulds, plastic and other components for electronic products and the manufacturing and trading of biodiesel products.

Net income in the first half of 2010 increased by 58.4% to HK$6.58million, with dividend of $0.015 per share. The turnover of the Group for the year ended 31 December 2009 had decreased by 9.6% to HK$449 million, as compared to HK$497 million for the year 2008.

I would expect a more increased revenue in the second half of 2010 as there were more demands on electronic products for like expansions of companies and factories, international events and so on.

Technically...



It just broke the previous high 2 days ago, but unfortunately fell back underneath yesterday. However, we should still keep an eye on it, and if there is any breakout, the potential profits would be huge. As we can see, there is no any technical resistant until 2.45. So it could surge from 1.14 to 2.45 which is more than a double! If there is really breakout, the rise would not take long too. So let's wait for any signal.

Crazy person betting on crazy stock (2010-10-25 DBA telecom analysis)

It's almost the end of October. There will be several influencing economic data such as GDP this week, together with the maturity of index futures and options, we could expect a higher volatility arriving.

I have found another worth-watching small stock today: 3335.HK - DBA Telecom. This stock is quite interesting though. Here is some of the basic backgroud of the company:

The Group is principally engaged in the design, manufacture and sales of telecommunication equipment and related products under the brandname "締邦" (DEBAN), self-service business and agency business for telecommunication products in the PRC. The Group’s revenue is generated from three main categories, namely, manufacturing business, self-service business and agency business for telecommunication products :

(i)	Manufacturing business: the design, manufacture and sales of telecommunication equipment and related products.
(ii)	Self-service business: sales of telecommunication payment cards through smart cards vending terminals and promote, design, produce and publish advertisement.
(iii)	Agency business for telecommunication products: to act as an agent of the suppliers to sell telecommunication products to cooperative distribution networks.

In early September, it announced an annual increase of 34.9% on gross profits , and 52.72% growth of net income.

With the snowing demand of telecommunication in China, being the top5 telecommunication in PRC, DBA has great potential to grow bigger. Recently, the release of iPhone4 might also help lift the market of telecommunication, and these companies can benefit from it too.

The fundamental supports a BUY of this stock. How about the technical one? Let's see.



DBA was only listed since 2006. The above chart is all the prices it has since listing. After going up to 1.80-1.86, it fell like roller coaster to as low as 0.4-0.5. Then it started moving upwards again, but the volatility was not an usual one. It is really hard for any normal people to accept such high volatility without any pain in their hearts.

But I found that, when the price were dropping from late 2007 to early 2009, volume was not high. This might show us that the corporate investors were not selling their shares. The price was lifted up again in 2009, the large volume at the range of 0.5-1.0 showed that these investors probably were buying some more shares as well.

Together with the IPO price of 1.26, they should have an average price of around 0.9 per share. Obviously, their aim would not be only double or triple. Usually they can have at least 5-6 times growth when playing around with small stocks. I would expect a breakout of the green line and even breakout of the highest price 1.86. Just keep an eye on this stock, we could buy if breakout of green line confirms.

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One more thing on this stock, I found that the company had a record of manipulating data during IPO. Also, it had high net income but did not pay dividend, this might somehow make us suspect whether the net income was true or not. Therefore, I do not recommend a long-term holding of this stock. Just follow the trend and gain the bit and leave.