InnoTek - Recommeded Buy But Chart Not So

CIMB has initiated coverage on Innotek Limited with an Add recommendation. The strong balance sheet of Innotek was one of the main reason.  “it has been in a net cash position for the past five years. From a S$34.9m net cash (including marketable securities) balance in FY15, Innotek’s net cash (including marketable securities) balance has grown to S$69.3m as at end Dec-2019″.

We initiate coverage on Innotek with an Add rating and TP of S$0.579.
■ We forecast prospective dividend yields of 3.95% over FY20-22F which are backed by its strong net cash balance sheet.
■ Accretive M&A are upside share price catalysts

Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.

Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.