Jul 7, FA/TA for TiongWoon

A request from "AA"

How well it manage its equipment rental?
Total 19 vessels on Heavy Lifts 68% rented and Marine fleet 52% rented.

What is the estimated outcome of FY 2011 result?
- From the quarterly results, it will hit approximately Revenue of 100millions or approximately 20% below FY2010. (very poor result)
- From Profit before Tax, it will hit a 15-20% of FY2010 result. (very poor result)

* From Accounting standpoint, Fundamentally shows that Revenue/Profit is deteriorating.

Is it a value investing?
Using the EV/EBITBA : PE, 1.35 < 5% ( means Overvalue stock)

From simplistic value investing standpoint,

• - NAV - 0.60 (according to Graham - 0.66 of NAV - PASSED the test)
• - Yield - 6% (according to Graham - above infaltion - PASSED the test)
• - PE - 5 (according to Graham - below < 8 - PASSED the test)

From Graham Investment standpoint, it passed the test of value investing.

July 7, TA for TiongWoon, (weekly chart)

• Trend - Down
• Momentum - Oversold (stochastic signal)
• Support - 0.31
• Resistance - 0.395
• Volume - Low
• Candlestick - NA

As I mentioned before, TA indicators for low volatility and low price might be not effective. So I suggest that you using the classic Support / Resistance as your reference. From TA, it is downtrending and will likely to break 0.31. 

In conclusion, FA + TA just simply indicate that it will break through below 0.31 and meet the new support line at 0.22. If you understand this industry, personally, this TiongWoon has value investing standpoint but the horizon has to be at least 2-3 years. Today, the TA timing shows it has potential to go down further. So be patience and wait for the right TA signal for entry.