Midas: may see spillover interest after CSR Corp (1766 HK) announced after mkt close, that they expect to see FY11 net profit increase by >50% yoy, about 5% better than Bloomberg consensus forecast.
CSR is one of the top two customers of Midas.
China railway related stocks have been hit hard since the reporting of various accidents and past corruption issues involving the Railway Ministry.
Midas is worst performer in the small/mid cap segment, -65% over the past 12 mths according to DBSV.
Technically, the stock has been in a prolonged downtrend and recently made a double bottom around the $0.31 level. Since then, the key indicators have picked up and are now above neutral levels and rising positively. This may offer opportunity for bottom picking. First resistance is at $0.36 (50day MA), followed by $0.45. Stop loss if $0.30 support is breached.
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