Hong Kong’s Cathay Pacific could face more belt-tightening as HK$1.2 billion interim loss looms

Cathay Pacific Airways could face further pressure for another round of cost cutting in the face of an estimated HK$1.2 billion in losses for the first six months of this year – one of the “worst results in its operating history”, according to analysts. 

The latest financial results for Hong Kong's flagship carrier are due to be released on Wednesday. The expected loss contrasts sharply with the HK$353 million profit made in the same six months last year, and also comes on the back of a HK575 million full-year loss for 2016.

The company earlier trimmed 600 jobs as part of a three-year business restructuring plan aimed at saving HK$4 billion over the period.

More news, Hong Kong’s Cathay Pacific could face more belt-tightening as HK$1.2 billion interim loss looms

Daily chart.

"Actions Speak Louder than Words"

Note : S-Trader indicators/tools are not part of Metastock software package. It is our proprietary system/tools. If you have any further inquiries, please feel free to Contact Us. 

Source :
1) Metastock
2) www.scmp.com

Wynn Macau Ltd (HKSE : 1128) / MGM China Holdings Ltd (HKSE : 2282)

Despite the recent positive news on a rebound in Macau's casino revenue, it failed to uplift Wynn Macau Ltd and MGM China Holdings Ltd stock price.

In fact, the stock price for both counters pullback and broke all the S-Trader Trend Tracker support levels before the news was published by Bloomberg.

Daily chart of Wynn Macau.

Daily chart of MGM China. 

Related post, Macau casinos’ revenue up

Note : S-Trader indicators/tools are not part of Metastock software package. It is our proprietary system/tools. If you have any further inquiries, please feel free to Contact Us. 

 Source : 
1) Metastock
2) Bloomberg

BOC Hong Kong Holdings Ltd (HKSE : 2388) - Upside Still Intact ?

Weekly chart.

Note : S-Trader indicators/tools are not part of Metastock software package. It is our proprietary system/tools. If you have any further inquiries, please feel free to Contact Us. . 

Source:
1) Metastock

China Candy Holdings Ltd (HKSE : 8182) - End of Fairy Tale !

Daily chart.

Related post, China’s Wahaha heiress takes Hong Kong penny stock on a roller coaster ride

Note : S-Trader indicators/tools are not part of Metastock software package. It is our proprietary system/tools. If you have any further inquiries, please feel free to Contact Us. 

Source:
1) Metastock

Macau Casino Stocks - More Upside ?

Recently, Reuters reports that the revenues in the world's biggest casino hub of Macau jumped nearly 30 percent in June, posting an 11-month winning streak, as demand from high-roller VIPs accelerated despite a corruption crackdown.

Monthly gambling revenue in the Chinese special administrative region rose 25.9 percent to 20 billion patacas ($2.49 billion) and analysts were expecting growth of 23 percent to 33 percent.

Related post, Macau casinos post 11th month of gains on VIP resurgence

Daily chart of Wynn Macau Ltd (HKSE : 1128)

Daily chart of Melco International Development Ltd (HKSE : 0200)

Daily chart of MGM China Holdings Ltd (HKSE : 2282)

Daily chart of Sands China Ltd (HKSE : 1928)

Daily chart of SJM Holdings Ltd (HKSE : 0880)

Daily chart of Galaxy Entertainment Group (HKSE : 0027)

Note : S-Trader indicators/tools are not part of Metastock software package. It is our proprietary system/tools. If you have any further inquiries, please feel free to Contact Us. 

 Source : 
1) Metastock
2) www.reuters.com

Cathay Pacific Airways Ltd (HKSE - 0293.HK) : On recovery path ?

In the post, dated on 22 March, some challenges ahead for Cathay Pacific Airways were highlighted, as noted below.
1. Where the share price heading to in near future ?
2. Will the organizational restructure revive the company performance ?

Since then, there are some developments made within the organization.
1. Replacement of CEO.
2. Staff layoff.

Last Friday, the company had a meeting with analysts from financial institutions and research firms, disclosing the huge bill of HK$300 million in redundancy payments to those employees been laid off. Its part of 3-year transformation of the business.

Exactly 2 months after the post raised the challenges ahead, the share price broke out all S-Trader Trend Tracker resistance levels, on 22 May. At the same time, the weekly chart also showed a breakout on week ending 26 May.

The price reacted in response to the news that the company confirms it will shed 600 staff from its head office.

More news, Hong Kong’s Cathay Pacific confirms 600 staff to go amid major restructure.

Looking forward, the company upcoming few quarterly earning reports will be closely watch - whether the recent actions will contribute positively. 

Daily chart

Weekly chart.

Source :
1) Metastock
2) www.scmp.com

Is Hong Kong’s property market heading for its biggest crash since 1997 ?

If history is any guide,the long queues of property buyers at Hong Kong’s Tsuen Wan residential project last weekend could be the harbinger of a bubble in the world’s most expensive housing market.

Hundreds of buyers packed into Cheung Kong Property Holdings' sales office, vying to get a unit at the Ocean Pride project built by Li Ka-shing, the city's wealthiest businessman whose property projects had long stood for appreciating value.

They were willing to ignore record-level prices and mortgage rates that had just been raised the night before by four of the city's largest banks.

More news, Is Hong Kong’s property market heading for its biggest crash since 1997 ?


Source :
1) www.scmp.com

Hong Kong Paper Billionaires - Part 2

In the Bloomberg news article dated on 18 April 2017, it shared some shares of all the paper billionaires' companies have traded between 5 and 335 times their respective book values. Hong Kong companies ranged between 1 and 1.3 last year.

One of the stocks listed above, Goldin Financial Holdings Ltd. (HKSE - 0530.HK) owned by Pan Sutong, who was formerly the 4th richest person in Asia, according to the Bloomberg Billionaires Index. His companies was issued with the SFC's warning in 2015.

Here is a look at the daily chart of Goldin Financial Holdings Ltd showing the rally before the massive crash in May 2015. 

(Note : The dates highlighted on the chart below has some typo error. It should be 20 and 21 May 2015 instead of 2016)

Another view on daily chart of Goldin Financial Holdings Ltd. showing the some best entry level based on S-Trader system before the strong rally.

On 15 Sept 2014, the price broke out its sideway with relatively high volume - 6,462,320 traded. It rallied to high of HKD6.71 on 24 Sept before it pullback and traded sideway until Dec.

The other best entry level occurred on 15 Dec 2014. The price broke out ranging market with relatively high volume on that day - 5,806,743 traded.

Throughout this period, S-Trader Trend Tracker held steadily and was only tested once on 7 Nov 2014 but did not break below it.

 
Source :
1) www.bloomberg.com (A 9,800% Stock Increase Exposes Hong Kong's Billionaires on Paper)
2) Metastock

Hong Kong Paper Billionaires

The Hong Kong Stock Exchange and its sibling, the Growth Enterprise Market, have become a breeding ground for paper billionaires.

In the past three years alone, perhaps as many as a dozen executives, many from mainland China, have amassed billion-plus wealth as their companies’ share prices soared, usually for no apparent reason.

The executives and their companies haven’t been accused of wrongdoing.
But the phenomenon has raised flags for Hong Kong regulators, who warn that the stocks can be susceptible to manipulation, particularly when few of the shares are in the public’s hands.

More news, A 9,800% Stock Increase Exposes Hong Kong's Billionaires on Paper


Source :
1) www.bloomberg.com

China Huishan Dairy Holdings Co. (HKSE - 6863.HK) - Hong Kong regulator bars trading in China Huishan Dairy shares in rare move

South China Morning Post, on 8 May, reported in a rare move, Hong Kong's securities watchdog ordered the suspension of trading in the shares of China Huishan Dairy Holding, amid signs that the troubled dairy operator's financial woes are far from coming to an end.

There have been only six such directions issued by the SFC since 2011, and the repercussions can be severe.

For more story, Hong Kong regulator bars trading in China Huishan Dairy shares in rare move


Source :
1) www.scmp.com 

Country Garden Holdings Co. Ltd. (HKSE - 2007.HK) - Negative News With Negligible Impact

On 5 April 2017, South China Morning Post reported Country Garden Holdings, whose Forest City project in Malaysia is the biggest overseas project by a Chinese property developer, will refund money to mainland investors caught up in Beijing’s escalating crackdown on capital outflows. 

The move is the latest consequence arising from Beijing’s tighter policy on capital controls, with most Chinese developers engaged in selling overseas properties now forced to shift their focus from mainland buyers to other countries.

More details, click below link :
Country Garden pledges refund for Forest City buyers caught in Beijing’s crackdown on capital outflows 

In early March 2017, South China Morning Post also reported the company has closed all sales centres in mainland China for its flagship Malaysian housing project amid Beijing’s intensified crackdown on capital flight.

Detailed news, click below link :
Country Garden halts Malaysian housing sales amid capital flight crackdown 

Daily chart of Country Garden.

Despite the negative news, the above chart showed no impact on the company's share price and it still able to climb higher.

Prior to it, South China Morning Report reported the company spent more than any other Chinese developer on land acquisitions last month as it pursues faster sales growth in a bid to catch rivals China Evergrande Group and China Vanke, on 7 Feb 2017.

The company splashed out 10.2 billion yuan for 14 land parcels last month, including a 2.25 billion yuan residential site on the outskirts of Shanghai. The other plots are all in smaller cities such as Hangzhou, Nanchang and Wenzhou, according to a report by Tospur Real Estate Consulting. 

More detailed news, click below link :
Developer Country Garden led its rivals in January’s land purchases

This news drove the company's share price to break out its sideway range on 7 Feb 2017 with high volume transacted as shown by S-Trader Volumetric.


Source :
1) Metastock
2) www.scmp.com 

China Huishan Dairy Holdings Co. (HKSE - 6863.HK) - Debt Bubble Sank The Ship

A treasury head went missing, mysterious 85% stock price plunge, half of its board members resigned and a tycoon chairman's wealth gone with the winds within 1.5 hours. 

The company crisis has exposed a gigantic debt overhang looming over corporate China.

For more details, click the below link :
How the debt bubble burst for China’s Huishan Dairy

On 24 March, the share sank by a record of 85% before it halted trading. 
 

The sudden crash wiped out about $4.1 billion in market value.  A record 779 million shares in the Shenyang-based company changed hands,
the most on Hong Kong’s exchange.

In December 2016, Muddy Waters alleged that Huishan had been overstating its spending on its cow farms by as much as 1.6 billion yuan to "support the company's income statement."

The report also alleged that the company made an unannounced transfer of a subsidiary that owned at least four cow farms to an undisclosed related party and Muddy Waters concluded that Chairman Yang controls the subsidiary and farms.


More details, click the below link :
Huishan Dairy, Muddy Waters Target, Sinks 85% in Hong Kong

On 16 December 2016, the share dropped as much as 4.3% to HK$2.69 before being suspended in Hong Kong, which the Shenyang-based company said was pending a clarification announcement on the report.

It happened after short seller Carson Block's Muddy Waters Capital LLC said the company is "worth close to zero" and questioned its profitability in a report.

Detailed news, click the below link :
Muddy Waters Shorts Top China Dairy Farm as Shares Halted

Here is the daily chart of China Huishan Dairy.

When the share resume its trading on 19 Dec 2016, the price rebounded and broke all S-Trader Trend Tracker resistance on 30 Dec 2016. However, the price break out associated with low volume as noted on S-Trader Volumetric. A possible weak break out action and an early warning alert to shareholders and investors.

Few days before the share plunge, the price move higher on an increasing volume between 15 to 17 March 2017, A very high volume transacted (recorded by S-Trader Volumteric) but the price action failed to break out its side way range. Another possible sign of weakness and warning alert.

Thereafter, is history.

Here is the final price action chart after the share been suspended until now.

Source :
1) Metastock
2) www.bloomberg.com
3) www.scmp.com