Homeriz on the move

Hi Readers,

Back in July, we shared Homeriz (5160) due to its attractive dividend yield. You can refer to the archive in July folder. Below is the recap of the trade setups:

Possible trade setups:
Entry: Below $0.66
Stop loss: $0.58 and below
Target profit: According to your rate of returns or the levels above
Remarks: As this is considered a dividend stocks from my perspective, one should hold as long as the company continues to pay dividend at minimum of $0.025 cents per year. One can leverage the power of zero cost averaging when the price hits your own target or when it hit the target valuations to generate additional cash flow.

There is a noticeable consolidation since then but did not trigger the stop loss of $0.58 cents as shown in the updated chart below. Right now, it is showing interesting move particularly last Friday whereby a noticeable gap up above the 50 days moving average with high volume. Technically, that is a breakout and there is sufficient evidence that it will continue its move upward. Unless the gap closes, any minor retracement moving forward is a good opportunity to add in. In any technical chart patterns formation, it takes time and one should take note of that.

Additional point to take note is that Homeriz is expected to report its Q4'19 performance by end of October. As we know, trade wars between US and China has resulted in additional tariffs on furniture from China and this goes well for Homeriz. Seasonally, second half of the year tends to be a stronger quarter performance for furniture counters and we have seen Poh Huat reported a good QR last Friday as well. (+18.19% qoq and +22.49% yoy).

Homeriz: Breakaway gap on 20th Sep and possible rounding bottom/complex inverted head and shoulder formation 

Homeriz: Financial performance improved strongly compared to the previous year

Looking at both the financial data and technical chart, there is evidence that Homeriz will continue its uptrend. Having said that, there is always a risk that there may be surprises in quarter reporting and hence, one can exercise cost averaging by selling a portion of your winning position to lower down your average when the opportunity arises as you continue to ride its trend at the back of improving QR and higher dividend payout. 

Good luck and all the best!!!

Disclosure: The information above is for sharing purposes without any understanding of investment targets and needs of readers. References to the price movements is informational based on my analysis and data obtained from sources believed to be reliable at the point of writing. Please do your own due diligence as this article is not a recommendation to buy/sell.