MacGyver, are you really in Xiamen to check out companies? As a quiz, are Xiamen girls as pretty as SG girls? What are the prices of the latte and McDonald's meals there? Or whatever you happen to be drinking / eating? Can you post some photos of yr Xiamen visit?
Hi MacGyver
I don't means to be rude, but it is all the same, you still can buy your favourite stock cheap. If mkt is not down, then when we got opportunity to buy cheap. So the coming week is for me to collect my favourite blues,some are my long term investment,which i cost average.
I am not smart, but rather kiasi and kiasu.
BTW, is visiting the coy means anything. If the management decide to cover up, what can we do. Sometimes even auditor also kanna bluff. That is why, always blues, because they are not lightly to cheat.(of course they can if they want) but unlikely.
But again high risk means high gain. I think I like Qingmei. But I have foreland and UMS. but because dark cloud over the horizon. I do not wish to take the risk(kiasi), and lose money(kiasu).
I vested 2 only , so i can run fast and add on if there are play on them.
Wish you a good and enjoyable trip.
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[MacGyver 23-05-2011]:
Dear Mr Cheongwee,
Nothing has changed regarding my opinion.
I am not as smart as you. You can make money from your clever trading strategies. I make peanuts from hours of learning.
I believe the market has started to show some positive sentiments. It will be gradual but certainly better than what it was in March to May. During March and April, fund managers are not so keen on IPOs and placements. But today, my banker told me that MGM China has been oversubscribed tremendously. And this is not a small IPO.
I am currently in Xiamen, enjoying my coffee in Marco Polo Hotel while reading your post. I am taking my own sweet time to know a few companies better, so that I can start to buy them after I have done my homeworks. Names like Qingmei have never crossed my mind before. It is a good time to learn more.
Inflation in Xiamen is not as bad as it was reported in the media. I still see consumers along their main "Orchard Road" this afternoon. Business still looks good.
Let's listen to what Mr Market got to say in the coming months.
I think there are several economic bumbs ahead before the bull can run. In order of severity, the us debt limit cannot get raised, Greece have to resort to restructuring their debts, more downgrades of credit rating by rating companies, end of QE. The reverse sequence of the probability of these events actually happening is also true. If the first 2 events doesn't happen, I think what is generated is more fear than real economic consequences and I actually agree that and hope that a repeat of 2010 is on the cards. However, I feel that fear, or negative sentiments does cause market to fall although the odds of predicting it is like tossing a coin. As STI goes higher, I get more risk averse, and 3000 plus is actually an range where I will be more careful than sorry. I am also saving my bullets, and I take the VIX index as a gauge to re-enter market, as I bet that the first 2 events will not occur. I have waste some rounds on Anchun but I count myself lucky that I have take profits for my earlier short term punts such that I still have some rounds to play with.. I am hoping like Macgvyer to pick up some s-chips during the lull period. This time round, I will focus only on 3 companies if the price get low enough. They are qingmei(provided no negative comments after factory visit), Hu an and Techcomp. I believe that there is still meat in the market and the bull run has not finished, while I dun think sentiments will turn very soon, I believe closer to the 2nd quarter reporting season(aug) things may look up again. Dun forget, markets has the ability to "forget" or "live with" bad news as long as it is not economically de-stablisating. Libya is an good example.
Hi reck,
Qingmei has Low PE of less than 3. Earnings has been stable with potential for earning surprises since recently expanded capacity has not been much utilised yet. assume that they manage to just able to maintain their earning, and since management has already promise to guve 30 % of profits as dividends, I expect 2.5 cents dividents in just months, that is more than 10% in 3 months, with upside potential. I will accunulate further only at 20 cents or lower
Techcomp is going for dual listing, and has fall from its height of 51 cents. Its manufacturing arms which commands better margins is expanding. PE of 7.5 for an non s-chip in the high tech health sector is undemanding. Potential for price increases when they confirm dual listing plans and start book-raising exercise. I will only accunulate when it is 42 cents or lower
Hu an is in an booming industry, with the 12th 5-year plans from the PRC allocating an 100% increase in budget in infastructure. With urbanization going on in china, Hu an is a sunshine sector. Trailing PE of 6.5 might not be very attractive for an S-chip, yet this Company is in a growing phase, and I believe 2012 or late 2011 will be a turning point for this company. That will be the time when its new plants producing higher value add cables come online, and if the company can capture such demands, earning will grow and perhaps even double. Hu an has also manage to develop upstream, and produce copper which is an raw material for cable, and make a profit out of it, as such they have the means and economic of scale to manage costs.
All 3 companies have investors' confidence in the sense that Qingmei attract an australia fund to invest in the company at a price of 32 cents (If i didn't remember wrongly), SEAVI bought an 4.2 % stake in HU An at 42 cents, and an existing substantial shareholder of techcomp increse its holding to 10% at 41.5 cents after 3 years.
All 3 companies have management that have shown consistency in executing their expansion plans without delays or excuses, and at the same time delivering results. Although HU an and Qingmei has just listed recently and there is no track records to speak of strictly speaking.
Hu an and Techcomp are in a sector that has potential to further grow in the PRC in the mid-long term. QIngmei is in the cut-throat textile sector but has compete relatively well thus far. Also QIngmei is already heavily discounted in terms of PE compare to the other 2
Hope my views didn't bored you
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