Hi to all fellow investors and traders !
Today I would like to share my thoughts the following counter:
HB GLOBAL LIMITED OR HBLOGB (Code 5187, MAIN Market, Consumer Products & Services, Food & Beverage)
HBGLOB - WOW !!! ANOTHER OVERLOOKED STOCK WHICH MIGHT SOAR DUE TO VIRUS OUTBREAK !!!
1. First Of All, My Condolences To Those Who Are Affected By The Virus
Before writing any further, I would like to first say out my
condolences to those lives who are affected by the Coronavirus outbreak
(2019-ncov), either directly or indirectly.
I pray and hope that the situation will be improved and that our daily
lives an be back to normal again. Not to forget, thanks to all those
volunteers and workers who are putting effort day in and day out to
fight and eradicate this outbreak.
For live figures on the outbreak, you may check the below website:
2. HBGLOB - An F&B Company Based In China - To Benefit From China's Orders To Increase Food Production Due To Virus Outbreak
Their website can be referred below.
Their main products are Ready-To-Serve Foods, Frozen Vegetables, and
Others (wheaten products, vacuum fried snacks and asparagus tea
products).
HBGLOB main office and plant is in Shandong province. If we take a look
at GOOGLE MAPS, the distance between these 2 districts are
approximately 926.2 KM.
With the recent virus outbreak, China has ordered food producers to
ramp up production, as the 2019-ncov outbreak is getting worse.
A lot of citizens are just staying at home and avoiding public places.
Therefore, ready-to-serve and frozen food products will be in HIGH
DEMAND as people stock up their home with such food.
Below a news article explaining the situation in Wuhan (which should
also be similar in other provinces although would be less serious, as
the general public will also take precautious steps to avoid infection):
3. FINANCIAL ANALYSIS - Looking At Better Results Post-CORONAVIRUS Outbreak
Let us look at HBGLOB financials. With an NTA of 42c per share, it
would be a very tempting entry for long term investors looking for a
reasonable entry into the company.
The earnings have been deteriorating the past 2 quarters, however with
the virus outbreak in play, I foresee that the coming quarter results
shall show an improvement in total earnings.
HBGLOB also recently in OCTOBER 2019, had been uplifted from its PN17
status as it no longer triggers any criteria under this category.
Therefore, this will allow more margin players to grab an entry into
this stock should they see it as undervalued at the current price.
4. TECHNICAL ANALYSIS - Sellers Diminishing, Support Formed Around 6-6.5c, Ready To Rebound At Any Time From Now
Let's take a look at the weekly chart of HBGLOB:
A few observations below:
i) HBGLOB hit a 2 year high of 37c in March 2018 when it had posted superb quarter result with EPS 2.59c
ii) HBGLOB hit a 1 year high of 15.5c in October 2019 when the upliftment of PN17 was announced
iii) The recent selling volume is diminishing, signalling that the 6-6.5c price might be the current bottom price for now
iv) RSI and stochastics indicate oversold
Let's take a look at the daily chart:
A few observations:
i) There was heavy profit taking when the counter was uplifted from
PN17 in October 2019. Since then the counter had trended downwards and
forming a rounding bottom support at 6-6.5c
ii) selling volume looks diminishing over time
iii) RSI and Stochastics indicate oversold and potentially to rebound at anytime
CONCLUSION
Based on my opinion, I believe HBGLOB should be seeing better future ahead, based on below:
i. HGLOB Being A China Based F&G Company, Should Benefit From Recent CHINA Order To Ramp Up Food Production
ii. Trading At Big Discount To Its NTA of 42c, and Earnings To Be Better Ahead From High Demand Of Its Products
iii. Chart Shows Sellers Diminishing, and Oversold Position, Ready For Rebound Anytime Soon
Thanks for reading and see you in the next post.
THE ABOVE IS NOT A BUY OR SELL CALL AND IS ONLY A PERSONAL OPINION ARTICLE AS A SHARING TO BSKL COMMUNITY MEMBERS.
Yours Truly,
INVESTHOR
https://klse.i3investor.com/blogs/InvesthorsHammer/2020-02-01-story-h1483014103-WOW_ANOTHER_OVERLOOKED_STOCK_WHICH_MIGHT_SOAR_DUE_TO_VIRUS_OUTBREAK.jsp
