Penny stocks on the move

gangho wrote: Can try ISDN. A local cmy with huge presence in China. Good div yield stock too

Gang -- why is this stock running so hard? btw, the dividend yield nothing to shout about. Just 0.5 cent a share. Yield is only 2% if stock was bought at 20 cents a week or 2 ago.

ethan999 wrote: Hi Yeh,
Sino Grandness closed at over 80 cents.
I'm happy to say I'm now up more than 100% on Sino Grandness and up about 70% on China Minzhong. 
Although the rising tide of the recovering Shanghai Composite has certainly helped lift Chinese stocks around the world over the last month or so, there is no doubt that Sino Grandness has significantly outperformed.
The sky's the limit in terms of growth potential for Garden Fresh and if it gets listed in Hong Kong at the kind of valuations beverage companies are getting there, Sino Grandness will likely see a huge cash injection quite possibly even larger than its current market cap.

You should see all the bashing and pessimism onslaught that China Minzhong suffered back in the middle of 2012 when it was as low as 50 plus cents. Even when it was trading at a PE of just over 2 and less than half of NAV, people were saying it was a no hoper. Today it reached as high as $1.05.
Similarly when the Shanghai Composite went below 1,900 a few months ago, many were bearish and saying it would go lower, despite extremely low valuations and the fact that it had reached the same levels as it did during the Lehman crisis in 2008-2009.
All this goes to vindicate the tried and tested strategy of buying high quality stocks when everyone is bearish and volume is low.
Despite the big run up, barring any unforeseen circumstances, I intend to keep Sino Grandness until at least one or both of the following happen:
1. Shanghai Composite hits 3000. (This is nothing considering it exceed 6000 in 2007).
2. Garden Fresh gets listed in Hong Kong
No guarantees that the price won't suffer any corrections before then, but I'm a fundamental investor not a trader.

Dear Ethan999, thank you for sharing your interesting insights. As you are convinced about Sino Grandness' future, may we know if you have topped up the share holding in recent months? At what price? Or are you content to sit on your purchases made at 50 cents (?)

Thanks in adv. !

Hi Sana,

While I have added a little to my holdings of Sino Grandness in recent months, my average price for Sino Grandness remains just over 40 cents (not 50 cents). As my original investment in the company already amounted to 6 figures, my recent smaller purchases have not significantly changed my overall average price. In recent months I have also purchased more of China Minzhong when it fell below $1 and Yanlord when it fell below $1.40.

I definitely continue to believe in the growth story of Sino Grandness. Also, neither of the 2 factors I mentioned in my post you quoted above has happened yet - Garden Fresh will probably be listed next year, and the Shanghai Composite is nowhere near 3k.

Even if you're not invested in a market index (in this case the Shanghai Composite), I believe the index is an extremely important factor for investors to consider when making investment decisions. The index level tells us whether we're in a bull or bear market and is a great indicator of overall market valuations, as well as the potential upside or downside.

To my mind, at 2.2k, Chinese stocks including those listed overseas are still trading at bear market levels - compare this to the bull market high of >6k back in October 2007. Some of the biggest banks by revenue in the world listed on the Shanghai Composite such as ICBC, China Construction bank, Agricultural Bank of China and Bank of China are trading at P/Es of close to 5, and are close to if not below book value. To me, this makes them dirt cheap. From a historical valuations standpoint, the Shanghai Composite is trading at very low valuations. When it returns to a bull market, it will make an immense impact on Chinese stocks listed all around the world.

Given my views on the Shanghai Composite being undervalued, I have also invested in the UETF SSE50China100X (can be purchased through local brokers) which is an ETF play on the Shanghai Composite. I believe something big will happen under the new Chinese Leadership over the next few years that will seriously spring the Shanghai Composite into life - we just have to wait and see.

My friend, your initial investment in Sino Grandness was already 6 figures? How come you had so much conviction at that time? Did you manage to speak with the management? Did you get to attend any of the briefings?

Anyway, this is a solid multi bagger for you and congrats are due!

If you had 100,000 sgd invested, it's now 355,000 sgd.
150K : 530K sgd.
200k : 710 k sgd.

Er, you are not sitting on a million-$ holding now, are you?

My friend, your initial investment in Sino Grandness was already 6 figures? How come you had so much conviction at that time? Did you manage to speak with the management? Did you get to attend any of the briefings?

Anyway, this is a solid multi bagger for you and congrats are due!

If you had 100,000 sgd invested, it's now 355,000 sgd.
150K : 530K sgd.
200k : 710 k sgd.

Er, you are not sitting on a million-$ holding now, are you?

What do you all think of Yamada Green Resources? Thinking of picking up 100,000 shares. Now 24.5 cents.

Main thing is Chairman Mr Mah Bow Tan and the CEO Stanley, of Global Yellow Pages, have visited Yamada and there must have been an all-night pow-wow, or even 2 nights. Then Global Yellow Pages has the confidence to buy big time.