I have done quite a bit of trading over the past weeks due to the quarterly annoucement of results:
Pared down my position in Hongwei to raise cash to buy others.
Bought and sold Shanghai Turbo, to raise cash to buy others and also due to its disappointing 3Q results. Originally bought as a turnaround play, but its 3Q results shows that the turnaround is not that certain.
Bought Hengxin at a higher price than its current price. I am thinking that the market may be undervaluing the stock given its higher sales, its significant market share in co-axial cables and future expansion in capacity. However, Hengxin seems to lack pricing power and its lower than FY06 net profit margin seems to show weakness in cost-control. Nonetheless, my assumption is that the low price may have more than compensated for its weakness.
Bought Valuetronics. This is quite an undervalued stock going by its PER of less than 5.
All in all, stocks have been going for bargain prices recently. If the oncoming quarters prove to be no more than a slight slowdown, then probably my buys will make good money. If it is going to be a fierce global recession, then probably I will be in for some lessons and significant losses.
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2 comments:
Hi,
I have set up a new site (http://thefinance.sg) to house the articles of various local bloggers.
Will you be interested to have your posts in my site as well?
Cheers
Derek
Hi Derek
I prefer to keep a low profile.
Thanks for your offer.
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