Biosensors

Biosensors: breaks below the psychological $1 support level, and trending to a new multi year low. Today's long red marubozu candle suggests active re-positioning in the counter, before its 1QFYMar14 results due tmrw after market close. We reiterate the market concerns that Biosensors faces a sharp decline in licensing revenue from Japan, given increasing competition from new generation DES products. Certain broking houses (including Maybank KE) have recently shaved their earnings forecasts. Meanwhile significant shareholder Norges Bank has bailed out, and Atlantis Capital has recently trimmed its stake. Further results misses may lead to further downgrades by the street and would likely catalyze a further slide in share price.