Midas contracts history for 2012 so far:
- 1 March Midas' JV Company Nanjing SR Puzhen Rail Transport Secures RMB526.9 Million Metro Contract
- 12 May Midas Secures Two Metro Contracts Worth RMB62.2 Million
- 2 July Midas' JV Company Nanjing SR Puzhen Rail Transport Secures RMB860 Million Metro Contract
- 11 July Midas Secures New Contract Orders Worth RMB139.3 Million
- 14 Aug Midas' JV Company Nanjing SR Puzhen Rail Transport Wins Two Metro Contracts Worth RMB1.4 Billion
- 3 Sept Midas' JV Company Nanjing SR Puzhen Rail Transport & Consortium Partners Secure RMB588 Million Intercity Rail Project
- 5 Sept Midas Strengthens Its Foothold In China's Power Industry With RMB123.4 Million New Contracts
Fundamental Outlook - Buy. It is clear that the Chinese government are indeed ramping up rail development once again after a hiatus from the Wenzhou railway incident 1 year ago. Let's not forget that it is in the interest of the Chinese government to link up cities and continue the economic boom, although possibly at a slightly lower pace from before. Nonetheless, resuming of the rail development business is definitely going to be a boon for Midas.
On top of that, Midas is clearly diversifying in light of their recent troubles to restructure their business to also incorporate power. Their first contract of 2012 in the power industry has been secured in 5 Sept, a few days ago, to positive market acceptance.
- MACD - Has just turned upwards again and is in positive territory. Divergence also just turned positive when MACD crossed its signal line.
- RSI (25d) - Bounced off the 50% level and has some room to maneuver before the 70% levels.
- Bollinger Bands - Prices have just broken through the upper bollinger band to signify further upwards momentum.
- Breakout - A large white candlestick appeared on 7 Sept on the back of a breakout through the $0.38 major resistance. Expect this level to form good support for further challenging of the $0.44 levels for Midas.
- Volume - A huge surge in volume occured on 7 Sept accompanying the major white candlestick.