There was a spike down on 22/2/2012. This is caused by the litigation matter with regards to the letter of demand dated 15 February 2012 from Kastam DiRaja Malaysia demanding payment of the sum of RM91,750,418.99. Harrison is seeking legal advice on the demand and will make a further announcement on this matter after obtaining legal advice. At this point of time, there is no way to tell how this issue is played out but the damage to the price is already done.
Ok, the outcome of the litigation is still very far off and no one , even the directors, will be able to say much except to express confidence that the judgement will be to the favour of the Company. As such I would like to leave this issue aside for the time being and let me look at both the technical and fundamental aspects of this counter.
Technically, Harrison is at the crucial crossroad. Since it is rising on the long term uptrend and yesterday's spike down caused it to sit on the long term support, two things can happen. If this support stays as support (meaning that it is not violated) the uptrend will continue. However, if the price were to go significantly below the long term support (be prepared to be wipsawed) then the reversal of trend has taken root and down trend has begun.
Fundamentally, Harrison may be able to support the uptrend provided the Company is able to fight off the litigation. I made this qualifying statement because the fundamentals which I provide below is without the litigation.
For the year ending 31.12.2010, eps is 54.37 sen per share and for YE 2011 (first 3 quarters) eps is 37.38 sen. If say the 4th quarter eps is 12 sen the the full year eps for YE 2011 will be 49.38 sen. Announcement for the 4th quarter is due before 29 April 2012. As such the price before the spike down (closing price
before the spike down is RM3.70) looks like fairly valued.
Dividend has been paid without a break since 2003. For the YE 2011 it has paid a special dividend 50 sen less 25% tax on 13.10.2011.
Conclusion:- It is now at a very crucial crossroad and deserve the attention of investors.Technically it is uncertain and fundamentally it is Ok without the latest demand from Kastam DiRaja Malaysia.
Ok, the outcome of the litigation is still very far off and no one , even the directors, will be able to say much except to express confidence that the judgement will be to the favour of the Company. As such I would like to leave this issue aside for the time being and let me look at both the technical and fundamental aspects of this counter.
Technically, Harrison is at the crucial crossroad. Since it is rising on the long term uptrend and yesterday's spike down caused it to sit on the long term support, two things can happen. If this support stays as support (meaning that it is not violated) the uptrend will continue. However, if the price were to go significantly below the long term support (be prepared to be wipsawed) then the reversal of trend has taken root and down trend has begun.
Fundamentally, Harrison may be able to support the uptrend provided the Company is able to fight off the litigation. I made this qualifying statement because the fundamentals which I provide below is without the litigation.
For the year ending 31.12.2010, eps is 54.37 sen per share and for YE 2011 (first 3 quarters) eps is 37.38 sen. If say the 4th quarter eps is 12 sen the the full year eps for YE 2011 will be 49.38 sen. Announcement for the 4th quarter is due before 29 April 2012. As such the price before the spike down (closing price
before the spike down is RM3.70) looks like fairly valued.
Dividend has been paid without a break since 2003. For the YE 2011 it has paid a special dividend 50 sen less 25% tax on 13.10.2011.
Conclusion:- It is now at a very crucial crossroad and deserve the attention of investors.Technically it is uncertain and fundamentally it is Ok without the latest demand from Kastam DiRaja Malaysia.
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