China Gaoxian Fibre

Posting by Kevin Scully of NRA Capital at www.nracapital.com/netresearchv4/researc...log.aspx?blog_no=447 This is a recent IPO at S$0.26.....the price today is S$0.23. In our IPO watch, we actually like the stock and think its undervalued with PERs now in the low single digits. I just read an SGX announcement today which said that the price stabilisation was complete with 68mn shares being part of that exercise. These shares have been transferred back to the major shareholder Cao Xiangbin raising his stake in the company from 54.36% to 59.09%. With the price stabilisation over, we will now see a more realistic support level for the stock. This should also tie-in with its Q3-2009 results which will give investors a better feel of the earnings potential on the company. In the absence of any negative surprises, the stock offers a more attractive entry level today compared to its IPO price. Please read our IPO watch for more details on the stock and its price target.

Dear Dello, After fallen to today\'s price of S$20.5 isn\'t it more attractive to buy the stock now? But very inactive so far...Should continue to hold? Thanks Melvin Lee:)

China Gaoxian has just announced 3Q net profit of S$21 mil. on top of the previous H1 net profit of S$37 mil, that makes a whopping profit of S$58 mil, clearly shows that the company\'s products are differential and of higer margins than other fabric makes like Li Heng and Taisan. Glad to hold on to this counter with the interim dividend yeild of almost 26% based on H1 net profit alone, though price is still under the IPO price of S$0.26. Any thoughts on this counter?

After reading today\'s article on China Gaoxian, I am motivated to put it on my radar screen. Is this a good counter to those who have studied it? Results not too bad but after IPO, a series of good results can be expected. But after that, will things turn sour?

Watch out for China Gaoxian Fibre as volume edging up this morning. Many local stocks have been rised so much, and it\'s about time the S-Chip get some attention.

actually most s-stock got attention, only this friend not waking up. hopefully there are more investors among the holders now than before