Wednesday, December 9, 2009
China HongXing - Breaking Out From A Down Trend Channel
China HongXing looks like Breaking Out From A Down Trend Channel with an increase in a trading volume for the past two days. The stock price broke the 20D and 50D MA resistance, and MACD starts turning bullish. Immediate support between $0.18 to $0.19, next resistance at $0.215.
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Timely. Intend to invest in this counter. Does it have any dual-listing plans?
ReplyDeleteHongXing has lots of cash. They have initial plan to buy back shares but the plan is still not executed yet. I wonder what they are trying to do with the cash on hand. If they have not bought back any shares yet, why should HongXing go for dual listing in Hong Kong to get more cash? Logically it does not make sense but stock market is alway be irrational. So, invest carefully! Cheers!
ReplyDeleteSeems like Hong Xing 's quarter reports were not impressive. revenue,profit and margin hv been eroded on QoQ basis. ASP is sliding down for their key products. any good reason to pick this counter?
ReplyDeleteNo good reason to pick this stock for long term investment until the fundamental changes. However, HongXing may be a good short term momentum play when the trading volume returns.
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