Mr Investor

This week I will be reviewing Heveaboard. This is a follow-up review to my previous Heveaboard posts.  As you are aware, many stocks on Bursa Malaysia were beaten down to its lows recently. Now, after a historic win in the 14th Malaysian General Elections by Pakatan Harapan (Alliance of Hope), will the stock market bounce back?  The General Election held on May 9,2018, was by and large peaceful and went on without a hitch.  Malaysians are hoping for a clean, fair, and just government. This positive perception will be echoed in the stock market and will bring back market confidence. We now turn our focus to the annual report of Hevea  that was recently published on April 30, 2018. I thought it would be a good time to perform a follow-up review of this stock.  Technically, it is showing signs that its share price has bottomed out and has formed a base. The share price has retraced from a high of RM1.72 in October 2017 to RM0.88 in May 8, 2018, a retracement of about 50% !!  See Char

This counter had recently rallied and closed at a high of RM1.75 on October 23, 2017. What followed in the subsequent days were 2 straight days of profit taking. This was evident by the 2 significant black bodied candles which closed lower until October 25, 2017. Refer Picture 1 below on the technical chart of HeveaBoard. Picture 1:HeveaBoard Chart 25/10/2017 For any investor, testing a high 3 times at RM1.75 in 3 months would be an important indicator of a potential change in trend. Currently, HeveaBoard is trading at an important price "zone" - immediate medium term support level of RM 1.62 . Knowledge sharing For all support/resistance levels, there is a +/- variance of approximately 1% from the support line indicated. Hence, support at RM 1.62, can be interpreted as support at RM1.61 or RM 1.63. Can the support zone hold? Probably, because prices retraced about 50% from its previous rally . Note that the previous rally began in the highlighted RED rectangle - September 2

HeveaBoard Bhd (5095) is a Company that manufactures and sells high grade particleboards (PB) and ready-to-assemble (RTA) furniture. I understand that this stock has been heavily covered and monitored by most investors and finance houses, but I’d like to break it down to the lay investor. Hevea has a very small presence in Malaysia – 3% of annual turnover, and it largely sells its furniture overseas, especially Japan (31%), China (22%), Australia (8%), and Korea (5%). About 78% of its turnover is from the Asia Pacific region and 5% from Europe. Focusing on Asia Pacific is the right strategy as this region is experiencing sustained growth. Check out the article from Forest & Wood Products Australia regarding the potential growth of PB and MDFs in the Asia Pacific region: http://www.fwpa.com.au/statistics-count-newsletter/1246-viewpoint-particle-board-and-mdf-market-development-in-asia-and-access-to-low-grade-logs-and-residue-materials.html Below is a summary of the article: There