Listed since 13 May 2005 on SGX Mainboard, Longcheer Holdings Limited is engaged in the provision of mobile handset design with its major operations located in China. Recently there are lawsuites filed on competitors of Longcheer in China on design patents infringements. Basically how these china handsets design firms work is that they imitate to a certain extent newly released handset designs by the big names like nokia, motorola, siemens etc and come out with a cheaper version that resembles the originals.
Generally, the consumer market segment which are price sensitive is the biggest everywhere, more so for China. And if one can obtain the latest nokia lookalike mobile design at a fraction of the cost, the answer is obvious.
Technically, Longcheer has struggled to break through .865 in its recent recovery which will now be a tough resistance to overcome. Look to .70 for a crucial support that will determine if it consolidates and rebounds. If it does, there may yet be something to cheer about. The other alternative simply will not be pretty.
The above was posted almost 3 weeks ago. Since then, Longcheer has held the .685-.70 fort pretty well. Today it closed on its intraday high at .81, and looking towards another attempt to break the .87 - .895 region which it failed in early july. Cheering, anyone?
1 comment:
I see a potential doule bottom formation is in the making.
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