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Thursday, February 23, 2012
Tuesday, June 19, 2007
Sunday, March 11, 2007
China Hong Xing saw a 59% growth in revenue, with a increase in 85.5% for its gross profit. EPS increased 31.7% for FY06.
China Hong Xing has attributed the increase in sales to its advertising and promotion campaign for major sporting events in China. The company has recently launched its new "Ground Shock-damping System" in April 2006, and according to the management, has received positive feedback from the market.
In addition, the company is successfully increased the number of Erke specialty stores by 550, from 2100. This 550 stores far exceeds the target of the management of 364 stores (1 a day). In addition, the actual profit for FY06 exceeded the target of 180Million RMB by 30.4%.
The management has proven itself as a over performer, ie delivers more than what they promise. In the stock market sense, this is good for share prices as they constantly exceed market expectation. The company has set a $300Million profit target in FY07. I look favourably for the company to exceed that expectation.
China Hong Xing has constantly found itself as sponsors for sporting events, and is looking enthusiastic about getting a foothold in Beijing before the Olympics in 2008 with a flagship store near the Olympics location.
China Hong Xing looks to expand its capacity to be completed in 2Q2007. With a inventory turnover time of 37 days (increase in 6 days over 06), China Hong Xing must keep a watchful eye on this trend of increased turnover time for its inventory as it increases its capacity.
Dispite this, China Hong Xing shows good potential with good growth and ambitious marketing campaign. Like Sino-Env, with the large global sell-off, its perhaps a good time for investors to accumulate more China Hong Xing stocks.
Maintain BUY, with a target of $3.80
Friday, March 2, 2007
This week saw the much anticipated correction become a reality. Many fundamental investors (like me) saw their portfolio wipped out. Many are probably seeing a red in their portfolio, but for me, I still see an overall green, other than the red for Swiber.
Realised my Put Warrant at $0.31, a 63% gain over $0.19. Decided to realise the warrant as the market was showing signs of "slowing drop", probably on its way to a recovery or out of this bull run. That will really help me in any more falls where I may see my margin ratio fall out of acceptable range (which is unlikely as my purchase prices of the shares was low).
But really, nothing seems to be any where close to predictable. Just when the market thought the worst was over, to my horror, we saw the US market open 200pts lower on Thursday, only to see the market quickly recover back to a 20-30 point drop.
This is a period where good financial results have no effect. China Hong Xing released their results and showed a 100++% gain in sales and profit. I'll be doing a review on it soon. Sino-Env, Swiber performed extremely well as well.
The reason why I did not sell Swiber was firstly cause I was late in seeing the price low (ie saw the closing price only), and the other reason was cause the closing price was about -6% consistantly for 2 days already. In this Bear run, I'm reluctant to let go of Swiber until the price actually closes at -7 to -8%.
With the weekend ahead, all we can look forward to is for the market to take a quick breather, and start next week stronger than ever.
Wednesday, February 28, 2007
I was watching CNBC last night for an update on the US market. It collapsed 2% in the first hour of trade, and finally closing 3% down at the end of the day. I knew today would be a rough day.
Indeed, the STI Opened at 120+ points on the word "Go". I was shocked. Shocked to see my portfolio collapse. Yes collapse. This over "night" collapse is indeed a harder blow compared to last year's correction.
But for those who had bought Raffles Edu, China Hong, Sino Env at my purchase price, i don't think we have anything to worry about. The price should not drop anywhere close to below your purchase price.
This kind of correction may be good for long term investors like you. When was the last time you said "Hey, Sino is too expensive to buy now". Think this is the time to do it. But I don't recommend doing it now. Do it when the future is clearer. Buy closer to the "rock bottom". (Of course i don't think you can ever read the market to daily accuracy. )
But one thing is for sure (IMO), the STI is on its way back to the 2900+ level.
I've never recommended buying warrant but I've done it myself this morning.
I've purchased some insurance. I've bought STI 3000SGAePW70427, as insurance. My trade went thru at 0.19 this morning. This way, at least i've got something to cheer about when the market goes down.
Tuesday, February 27, 2007
Today, the STI index saw the biggest 1 day drop in a while. The STI index dropped 2.29%. The last time the STI started its month long correction that saw almost 300 points wiped out, the STI closed 3.27% over the previous day.
Today's correction is not isolated. Most international indexes (HongKong, indonesia, Korean, Malaysia, Manila, Japan, Shanghai, ShenZhen, Thailand and Sydney) saw the red, following the USA's Monday poor performance.
This could be one of the tell tale sign of a correction that most are anticipating. Whether this happens or not will depend on whether the US market continues its slide tonight or not.
For those who have not been vested in the market, i recommend against it until the outlook becomes clearer. For those who are already in the market, fasten your seatbelts and be prepared for a bumpy ride. But stay vested in the shares you already hold.