Hovid- starting a fresh

Hovid, once a darling of Bursa, fallen flat on it face with Carotech, a subsidiary and a pet project by its owner David Ho which makes Tocotrienol and biodiesel. What an roller coaster ride! From a height or RM0.40 to low of RM0.15, a drop of 62%. It has since recovered much of its losses and trading at RM0.38.

Carotech, listed on Mesdaq on 2005, was to be the largest biodiesel producer in Malaysia when it started to expend its factory. Interestingly, biodiesel was suppose to be a by product in it's process to extract tocotrienol (Vitamin-E) and carotenoids (Pro Vit-A) which is used by Hovid. However, when the plant was about to be ready, the 2008 crisis hit and wiped out the bio-diesel demand from Europe. (Its single largest bio-diesel buyer was a European company). It made huge losses and could not repay its loans. Carotech was delisted on may 2012. Hovid has paired down it's holding in Carotech making it a investment only at the end of 2011. Since then it's price started climb.

What we are interested in, Is this price recovery founded? Can Hovid continue to be a proxy to the Urbanization play? Can it allow us to participate the mega trend of ageing and increased need for health care and increasing health care cost? The following few charts might provide some clue. (You may click on them for a enlarge view.)