SunVic Chemical continue upgrading and good recommendation

TigerMel
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13 years 3 months ago #4910 by TigerMel

SunVic Chemical continue upgrading and good recommendation was created by TigerMel

Very good recommendation by nextinsight on SunVic Chemical now is doing $0.74. This is one of the low capital S-Chip investments continue to shine from a low price of $12.5. If you have been following this forum closely, you would made some bucks out of it.

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yeng
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13 years 1 month ago #5315 by yeng

Replied by yeng on topic Re:SunVic Chemical

Unexpected awesome 4Q result, with net profit of RMB300.
Almost half of the full year's net profit of RmB 649 m.

EPS is 23 SG cents, translating into PE of just 3.2X.
Assuming there is modest growth of 20% this year, the PE is just 2.6X.

Too cheap..... $1.00 stock coming .... At least.....

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observer2
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13 years 1 month ago #5319 by observer2

Replied by observer2 on topic Re:SunVic

Sunvic’s results were certainly excellent. However, the company has commented in its results that they “anticipate new AA production capacity to come on-stream within the industry in the PRC, which may have some effect on the selling prices of AA. Rising oil prices may also impact our cost of production.”
From the comments, we can deduce that competitors are coming in for a slice of the cake and profit margins will be affected sooner or later. Such competition is to be expected in every lucrative business sector. It seems to me that the easy money to be made from this stock is over and latecomers would be taking on higher risks for an uncertain quantum of profits. Insiders had started selling some of their holdings a few months back.
S-chips (selective ones) may yield very lucrative profits for investors during certain time period but holding any of them for an indefinite long term is also highly risky, as history has shown that, thus far, all S-chips went through volatile cycles, with many fallen by the way side in a down cycle. So far, no S-chip has made the grade of a “blue chip”.

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Mel
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13 years 1 month ago #5324 by Mel

Replied by Mel on topic Re:SunVic Chemical

I agree with observer2. The going could get tougher, and I have cashed out of Sunvic with a tidy profit. Those who have greater insights into the future of Sunvic may accumulate but I dont have such insights nor assurance. On top of that, there is an unexpected turbulence in the stock market - that damn Mideast situation has to settle down before the stock market will be able to rally strongly.

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yeng
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13 years 5 days ago #5774 by yeng

Replied by yeng on topic Re:SunVic Chemical

Sunvic will soar somemore --- missed the boat at 67 cents. Now at 76 cents. :-(

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TigerMel
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13 years 10 hours ago #5814 by TigerMel

Replied by TigerMel on topic Re:Re:SunVic Chemical

SunVic Chemical is flying hits high $0.82. Good luck to all readers who have read this forum.

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