assistance of the parent company and strategic investor, CAO will achieve better

and faster growth.

 

I see CAO has strong backing due to this new Chairman, more business will continue to flow in! This share has more room to shoot further.

 

Staging third breakout this year with latest volume heaviest since

relisting in March-April 2006

The counter appears to be celebrating its first relisting anniversary with a bang, with volume last Friday at highest since the early days of relisting, lending weight to the latest and third breakout this year to near

record highs.

In fact the follow through rally this morning has sent the stock to intraday levels on its March 29 2006 relisting date when it swung from $1.30 low to $1.85 high, finishing the day at $1.64 on record volume of 88.8m shares.

Another good guidance of its current behaviour was the second day volatility between $1.42 and $1.63, ending at $1.45 on turnover of 49.5m.

CAO touched intra-day high of $1.48 this morning with volumes at 10.1m around 10.15 am compared to Friday?s 17.1m shares when the counter jumped 18 cents to close at the day?s high of $1.34.

Having broken the $1.45 resistance and since it had never seen a day?s high above $1.42-43 after the relisting debut, CAO seems headed to the next resistance target at $1.63-64.

Strong hints that the stock is being increasingly re-rated despite absence of analysts? recommendations had been seen when it broke out in mid-January from its 3-month consolidation around $1 to $1.11.This was followed by another strong breakout at end-February soaring from $1 again to $1.23 in 2 days ignoring the market correction that was setting in.

Turnovers were noticeably heavy during these episodes with the breakouts coming from well-formed consolidation bases, the latest base between $1.10-15 throughout this month. These strong bases neutralise the overbought conditions from such indicators as RSI and MACD.

The bullish picture is supported by the golden cross between the 50 and 100 days moving averages, which took place in mid -March. The stock has also made a clean surge above the 200s day moving average,

which is turning up to join its strongly rising shorter term counterparts,further reinforcing the bullish picture.

Having crossed $1.42-45 to touch $1.48, CAO is testing this area as a support since its next target at $1.63-64 is still a distance to go. This morning low of $1.37 is at the high end of a stronger support belt

around $1.32-38 which will act as launching pads for rallies whenever they are tested during bouts of profit-taking.

Judging by its stellar performance this year backed by 3 clear breakouts, CAO is on course to testing its $1.85 peak in coming weeks.

FRASER SECURITIES Research