If you wish to discuss market price alone, then I have no further comments. How about looking at the business prospects, margins, balance sheet and cash flow generation ability of the Company instead?
nah... i am not good at looking through fundamentals... so probably just wanted to know if anyone else is looking at this stock... the entry price i set is basically just base on charting...
But then fundamentals are what drives stock prices over the medium-term. The earnings and cash flow generation ability of a Company are key to whether it makes a good investment candidate. If one bases their buy/sell decisions solely on price action, then it\'s akin to speculation, which is a form of gambling.
Sinomem achieved S$15 m net profit in 9M of last year, & is expected to hit S$20 m for the full year. With 501 m shares issued, the EPS is ard 4 c. based on current stock price of 57 c, the PE then translates into 14X, which is not exactly dirt cheap! Cashflow-wise, Sinomem had a good report for 9M, when it generated positive net cash from operating activities of S$21.3 million in 9M 2009, an improvement from the $3.1 million in 9M 2008. This was mainly due to higher profit and better working capital management.
Had a quick read of its results. Quarterly, its profit rose in 2009, making Q4 the best at about $7 m. Will be looking out for Q1 soon. Stock price now at 52 cents - sorry to those institutions who took up 50 m new shares in 2009 at S$0.62. Rest of the crowd, the entry pt now is 16% lower at 52 c.
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