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A Walk in the Park with Cypark Resources Berhad (5184)

Lately, I have been searching for a company which has good profit margins, a business model which is non-conventional (i.e., not manufacturing, banking, plantation, and trading in nature), and resilient to external market shocks. I hope I have found the right company!


This week I will be looking at Cypark Resources Berhad (5184). Cypark is a company that is involved with the provision of environmental solutions. It has 4 main business segments which are:
1. Environmental engineering: Provision of nature conservation and environmental improvement services.
2. Landscaping and infrastructure: Provision of landscape services, project management services, and infrastructure development.
3. Maintenance: Provision of specialist maintenance works on leachate treatment plants, landscape services for parks, and maintenance of public amenities.
4. Green technology & renewable energy: Solar panel, biogas, biomass, waste-to-energy, and other renewable energy projects.
The business segment with…

Is it time to buy Inari Amertron Bhd (0166)?

Inari has recently corrected from a high of RM2.50 and is currently trading at RM1.90. A 60 cents or a 24% discount from its previous high, is it a good time to enter now?

For a short-term trader, taking a trade near immediate support at RM1.70 looks like a promising trade. Considering it has been on a bullish uptrend since forever, this recent price retracement looks like a God sent for those seeking to buy at lower prices. But is this a bear trap for opportunistic traders?

Chart 1: Inari Amerton Bhd Chart


Prices were certainly reacting to the recent negative news coming from US and China. Not surprising, was the recent sell down in the US tech stocks segment. News about a trade war between China and US and slowing iPhone sales have peppered the news headlines. Investors and traders should exercise some discretion as these are just market "noise."

Is the current downtrend of any concern? Yes, prices have recently traded below its 200-day Exponential Moving Average. For any market participant, this is a bearish move. Market bulls should tread with caution in this environment.

Chart 2: Inari chart with 200-day EMA


So is it all gloom and doom?
Not really. When prices retrace, it is a sign of OPPORTUNITY. Well as long as its fundamentals and earnings are still intact, I do not see why its share price will continue to move higher. Probably, the recent sell down is just a market reaction. In addition, Inari will be announcing its financial results this month and I will be closely monitoring it.

Conclusion
Should a trader buy at this opportunity? I would suggest monitoring if prices trade above the 200-day Exponential Moving Average. If it does close above the-200 day EMA, I do not see a reason for the downtrend to continue.


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