- Riots in Vietnam arising from Vietnam and China dispute over Paracel Islands in South China Sea
Further to our announcement dated 14 May 2014, we wish to inform that the manufacturing facilities of the Company’s subsidiary, Latitude Tree Vietnam Joint Stock Company (“LTV’) has resumed operation today, 22 May 2014.
The shut-down arising from the riot has resulted in a loss of 8 production days. The customers have been informed of the delays in delivery and rescheduling of delivery has been made.
Asset losses arising from the incident were limited to office equipment and computers, glass doors and windows of the main office building and a small portion of the packing section. The insurance adjusters are in the process of assessing the losses arising from the damages. Claims will be made against loss of business interruption and other damages. The losses are not expected to have any material impact to the financial earnings for the financial year ending 30 June 2014.
This announcement is dated 22 May 2014. (Filing of Lat. with Bursa)
Last Friday, Latitude (Lat) closed at RM3.24 for a gain of 19 sen. In the last 3 candles, there are 2 gaps. These gaps are a reflection of eager buyers.
The chart clearly shows that the stock has been in an uptrend. As a trend in motion is likely to continue, Lat in now in a good position to move higher.
The recent riot in Vietnam is no longer a concern. The above announcement says it all. The Vietnamese government has also assured that all companies affected by the riot will be compensated by way of a tax cut.
Lat is actually a Malaysian-based company. It has three factories in Malaysia, two in Vietnam and 1 in Thailand. The major share owners are Taiwanese, not Chinese from mainland China.
From an optimist point of view, the souring of relationship between Vietnam and China may turn out to be a blessing in disguise for Lat simply because it does not belonged to the Chinese but to some Taiwanese.
Lat will announce its third quarterly result, latest by end of this month. If showings in its chart is anything to go by, the result is mostly likely to be good.
The chart below gives you an idea as to how Lat has been faring when compared to some of its peers in the last one year. Have a good look, it easy to see the trend.
The red line is Lat. The others are: Lii Hen, Poh Huat and Homeriz.
The red line is Lat. The others are: Lii Hen, Poh Huat and Homeriz.
I am long on Lat. I believe the stock deserves a better rating.
