Sino Grandness rose 2.5 cents yesterday after the dayâs before 1/2 cent rise, bringing the total gains to about 7.3% since we highlighted the stock as an attractive pre-results play candidate 2 days ago.
ï¬ While the 2 day gains alone is already close to the average 8% gain that the stock usually makes in the 1 month period before its quarterly result releases, we note that gains could go to as high as 13-18% as seen in Nov â11 and Nov â10
.
ï¬ This suggests potential for another 6-11% gains which would see the stock hitting our resistance level of 46.5- 48 cents.
ï¬ We understand that management is planning to update the investment community about their expansion plans and new distributorships in the new provinces in China when they come down for their EGM on 19 July â12.
Something is brewing at Sino Grandness. Has possibly been the best performing s-chip over the last few months.
Could their aggressive expansion plans be coming into fruition?
The CEO coming on July 19, Thursday for EGM, so there is a flurry of expectation and excitement. The analysts and fund managers will have lots of input about the business.
Let's put it this way. In order for them to commit to such ambitious targets for convertible bond agreement with Goldman Sachs, the management must have seen enough evidence to make them very confident in attaining their ambitious growth targets for the garden juice segment.
Sino Grandness is one of the few chinese stocks that has remained steady since the highs back in February and March.
Watch this baby fly even as other s-chips remain in the doldrums. Without any official news reports over the last couple of days, some people inside there must know more than others..
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