China Gaoxian and DMX

TigerMel
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13 years 7 months ago - 13 years 7 months ago #4472 by TigerMel

China Gaoxian and DMX was created by TigerMel

China Gaoxian has been haulted and hope there is good new there. The valuation at Korean Exchange should be much higer here. But have not attracted major fund interests.
Meanwhile DMX Tech flops in OTCQX, shares only trade once so far. Should consider TDR instead.
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Last edit: 13 years 7 months ago by niadmin. Reason: shorter headline

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Dongdaemun
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13 years 6 months ago #4561 by Dongdaemun

Replied by Dongdaemun on topic Re:China Gaoxian

As sentiment turns positive, investors are ok with investing in S-chips that have low valuations such as Gaoxian (PE 3X only!).

Gaoxian has moved up inch by inch from 18 cents a few months back to 26 cents this morning.

26 cents by the way was its IPO price 2 years ago....

DMX is too expensive. Maybe its PE is about 40X this year's earnings.

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TigerMel
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13 years 6 months ago #4568 by TigerMel

Replied by TigerMel on topic Re:China Gaoxian and DMX

Thanks for info and PE ratio on Gaoxian and DMX. Took opportunity to sell Gaoxian this morning when it reaches highest at $0.285, make good profit! Still holding DMX though is expensive, I think counter has a lot of organic growth especially in the area of digital market in China. But bit of disappointment with it no volume trading at OTCDX. Should change other listing like TDR or HongKong instead since the company is HongKong base, make more sense.
How about serial system? PE? And Goungzhong Forest looks interesting and should have huge turnaround when sold to American firm. Another penny stock looks interesting, TopGlobal at $0.015 any potentials?

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yeng
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13 years 6 months ago #4569 by yeng

Replied by yeng on topic Re:China Gaoxian and DMX

Alamak, you sold Gaoxian at 28.5c?
U are giving up another 28.5 cts of profit to come!

At PE of 4X now, surely this stock can re-rate to at least 8X when it is listed on Korea.
There the peers trade at 30-50X and their earnigns are much smaller than Gaoxian.
Dont believe you can examine the table provided by UOB Kay Hian in this report:

www.nextinsight.net/index.php/story-arch.../3068-china-gaoxian-

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Joes
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13 years 6 months ago #4572 by Joes

Replied by Joes on topic Re:China Gaoxian

Now 29.5 cents, which makes me really sit up and wonder why the market is irrational.
Irrational in the sense that when Gaoxian was at 18 cents for so long, people thought it was a lousy stock.

The herd instinct!!!!

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yeng
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13 years 6 months ago #4584 by yeng

Replied by yeng on topic Re:China Gaoxian and DMX

A pullback to 27.5 cents on Friday along with the rest of the market - maybe it could drop a cent more tomorrow because of Dow's weaknesses over the weekend.

Anyway back to the fundamentals: The Chairman's statement on Friday evening seems encouraging regarding the higher growth rate from 4Q onwards as a result of the new capacity that has just been installed.

Mr. Cao added, “Our growth rate will no longer be constrained by production capacity
going into 4Q2010. With the newly installed capacity of both premium differentiated
polyester yarn and fabric products, we can kick start more aggressive marketing
efforts to meet the strong demand from PRC customers.”

As per schedule, the Group ramped up its annual maximum production capacity of premium
differentiated polyester yarn and WKF products to 210,000 tonnes and 81,000 tonnes respectively at the end of September 2010. As a result of the capacity expansion, the Group
is currently operating at a utilization rate of about 70.0% for both segments.

However, be reminded that the Korean listing will bring about a massive 40% dilution because Gaoxian is going to issue 600,000 new shares.

I think net-net this dilution is going to cancel the higher earnings from the expanded capacity.

But because Goaxian now trades at about 4X PE, the stock is still looking great. Just my 2 cents worth.

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