Reflections on Volume

Big volume without further upside equals distribution
Big volume without further downside equals accumulation

Volume tends to peak at turning points
Volume often precedes price movement
Volume is a relative study

Thursday, February 18, 2010

Supermax (7106.KU) may post 4Q net profit of MYR46 million

Supermax (7106.KU) may post 4Q net profit of MYR46 million vs MYR1.5 million year earlier, says CIMB Research's analyst Terence Wong; cites robust demand, stronger margins as reasons for substantially improved 4Q earnings. "Although no new capacity came onstream for Supermax last year, excess demand has given glove manufacturers including Supermax pricing power and boosted their margins," says Wong; adds 4Q net profit forecast +15% on quarter; takes FY net profit to MYR132 million (vs MYR46.5 million year earlier), which exceeds glovemaker's target of MYR117 million. Wong thinks Supermax may also surprise with special dividend of 5-sen/share. Keeps Buy call with unchanged target of MYR7.96. Company expected to release 4Q earnings at 0500 GMT Monday.

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