This has proven to be another gem in this forum. Sino Grandness now up 5 cents at 35.5 cents. Streamyxx, you hit bull\'s eye. Now, what is a fair value for this babe and time to move on>? Anyone else has a view?
What is so special about this canning company? Did the analysts explain why the earnings will be good? Most analysts just cut and paste from the management\'s mouths. This type of business is a OEM business which will be affected by rising raw materials costs and the inability to pass on the costs to the customers. Not to mention, the costs of raw materials such as tin will likely increase. In addition, the low PE does not allow them to raise funds to compete efficiently. So what is so good about them?
There is some overhang here as Phillip Securities, a pre-IPO investor, has been selling and still has 14.3 million shares to unload (assuming they want to out completely). Other than that, the PE of this stock is very low for a high-growth business. have to wait for its results soon to re-calibrate views on the stock.