China Gaoxian low volume trading. Maybe suggest the Management to consider applying a dual listing in Hong Kong for an more exciting trading. \"Promised\" dividends\' payout earlier not consistent in its latest Q & A sessions.
Who knows, maybe these guys are already doing some preparatory work. Gaoxian is not a small fish - it has a market cap of nearly S$300 m and a net profit of S$80 million (in 2009), so it will have liquidity in HK and the size to attract institutional investors. Gaoxian can easily sell placement shares at 5X PE, which is double its valuation in cheap Singapore.
www.nextinsight.biz/content/view/2286/60/
Seems like it\'s really quite undervalued if you compare the numbers.. and trading at quite much lower than recent IPO price too.. Doesn\'t seem to be popular though.. Something Big Boys know that we don\'t?
Why this stock (19 cents) is so undervalued at 2.7X PE based on 2009 results? If it were just a humble operation, I can undrstand. But this is a business that achieved S$81 million in net profit in 2009! Just 5.4X PE, will mean 100% upside... and it would still be considered cheap.
It is a very good suggustion for China Gaoxian to have dual listing in Hong Kong as it will stimulate greater interest for this undervalue stock. Meanwhile I suggest accumulating slowly this stock for uptrend towards the 40 cents target price by some broker house. Keep it till year end for some good profits. Now trading at 0.19 and any downside is limited for this stock. Happy trading.
I guess we have to be careful about this counter, we may not know something that the funds knew or pre-ipo funds or individual have be located huge discount comparing with IPO price. so it is time for them to unload.
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