"We believe Mr. Ho's expertise and experience will enhance China Yuchai's financial planning and reporting, strengthen corporate governance and improve investor communications. China Yuchai's rapid growth in the Chinese market created the need for improved financial management. Our Board decided to bring in additional resources to help us capture the opportunities for fast growth in China. China Yuchai aims to further penetrate the growing Chinese automotive and construction markets, maintain market leadership and maximize shareholder value."
The last sentence is key since we all know the growth potential in China. To help the cause, CYD retained The Global Consulting Group, which is a "leading New York based strategic communications consulting firm to be its investor relations counsel." The CEO said the following about Global Consulting:
"The Global Consulting Group was selected to represent China Yuchai after a thorough review of numerous candidates," said Mr. Teo. "The Global Consulting Group's strong track record in the automotive industry, its keen understanding of China's market, and its ability to help enhance shareholder value for its clients were the key reasons we selected them to assist us in our investor relations efforts. We believe that The Global Consulting Group's effective communications programs and reputation of developing long-term relationships with the investment community will enable China Yuchai to increase investor awareness and visibility."
Let's move to the chart:
The weekly chart clearly shows an inverted head and shoulders pattern with price moving right up to the neckline. Volume has been a bit more consistent over the past 6 weeks. We will be looking for high volume if and when the neckline is broken. This will validate the head and shoulders pattern.
I picked up another 1,000 shares today when my profit cost basis was 2% above my entry. I now own 2/3 position on CYD and will look to add up on the next 2% increase.
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