Dragon Group International Limited (SGX:MT1) Receiving US$20Mil Investment

Dragon Group International Limited (SGX:MT1) Receiving US$20Mil Investment

Dragon Group International Limited (SGX:MT1) Receiving US$20Mil Investment

  • Zhuhai Yinlong Energy Co., Ltd., as a strategic partner, intends to invest US$20 million in Dragon Group’s subsidiary, EoCell Limited, for a 40% stake in the enlarged share capital of EoCell
  • This values EoCell at US$50 million, and Dragon Group will hold 40% stake in the enlarged share capital of EoCell, with a valuation of US$20 million
  • Zhuhai Yinlong Energy Co., Ltd. is a leading player in China in the manufacturing and supply of electric buses and energy storage products, with multiple strategic shareholders such as Dong Mingzhu, president of Gree Electric Co., Ltd., Beijing Yanzhao Huijin International Investment Co., Ltd., Dalian Wanda Group Co., Ltd., and Jiangsu Jingdong Bangneng Investment Management Co., Ltd.
  • The strategic partnership, upon completion, is expected to monetize the EoCell Technology, riding on the strong growth of electric vehicles especially in China, and strengthen Dragon Group’s financial performance

Dragon Group International Limited is an investment holding company. The Company’s three principal business activities include distribution of electronic components and test consumables undertaken by its subsidiary Spire Technologies Pte Ltd; supply of semiconductor equipment, materials and tooling, undertaken by its subsidiary Dragon Equipment and Materials Technology Limited; and Nanjing Dragon Treasure Boat Development Co., Ltd., a subsidiary that is involved in the construction of the Dragon Treasure Boat. The Company operates through two business segments: Electronics Distribution, and Technology Investments and Others. It acts as corporate manager and advisor in relation to the administration and organization of the businesses of its subsidiary companies. The Company’s subsidiaries include DTB Limited (Hong Kong), Spire Technologies Pte Ltd (Singapore), Dragon Equipment & Materials Technology Ltd (Hong Kong), Nanjing DTB Development Co., Ltd and Spire Technologies (Taiwan) Ltd.

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 0.02.

The projected upper bound is: 0.05.

The projected lower bound is: 0.03.

The projected closing price is: 0.04.

DRAGON GRP closed down -0.003 at 0.041. Volume was 1,359% above average (trending) and Bollinger Bands were 273% wider than normal.

Open     High      Low      Close      Volume
0.044      0.045      0.035      0.041     34,708,200

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period     50-period     200-period
Close:     0.03      0.02      0.02
Volatility:      574      310      307
Volume:      11,433,940      2,864,382       1,929,191

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

DRAGON GRP is currently 142.4% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume into DRGN.SI (mildly bullish). Our trend forecasting oscillators are currently bullish on DRGN.SI and have had this outlook for the last 2 periods. Our momentum oscillator is currently indicating that DRGN.SI is currently in an overbought condition.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 82.8283. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 2 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 75.84. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 67 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 143.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 2 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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