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OKH Global: To Rebound After November Sell Down
Trend Spotting | 10 December 2013
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By: Robin Han
Articles (102) Profile

OKH Global suffered a severe sell down from late October to early November. After falling almost 40 percent, it has been exhibiting a flattish pattern. It seems that $0.50 is a very strong support and sellers have not been able to sell down the stock. Notably, the $0.50 level was tested in August when the stock was in an uptrend thus making this support level more significant.

In the past few trading days, despite the Straits Times Index (STI) experiencing a severe sell down as it slumped from 3,200 to 3,100, the counter managed to hold very well – this is a sign of strength indicating that sellers are not strong and buyers may have taken control after the consolidation. One may consider buying on the breakout of the high of the past few days, which would be a confirmation of the entry of strong buyers.

Daily Chart Of OKH Global

From the fundamental perspective, its recently-released 1Q14 financial results appeared very bad – revenue tumbled more than 80 percent and losses more than doubled. However, given that OKH is a developer, it is not surprising to see significant difference for a particular quarter on a year-on-year basis. In particular, OKH did not receive Temporary Occupation Permit (TOP) for new project in 1Q14.

Considering the already steep decline in price, it may be a good time to consider this counter as results are likely to improve come first quarter of 2014 when TOP is expected to be awarded. Furthermore, following the release of the negative 1Q14 financial results, it did not drop accordingly indicating a sign of short-term strength. This breakout setup is to ride a short-term rebound after the sell down in early November, and not to catch a major uptrend movement.

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Robin Han is a Ph.D in Department of Chemical and Biomolecular Engineering and has got a solid foundation in the financial markets.

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OKH Global  -- -- --   
Business: Engaged in ppty devt, provision of construction svcs & large-scale alteration & addition works. [FY18 Turnover] Ppty investment (60.6%), ppty development (38.1%), construction services (1.3%).

Insight: May-19, 9M19 revenue slid 24.2% due to lower reven... Read More

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