Guru Streamyx88: As you have been following the stock closely, may I know what you think the stock can reasonably rise to? This looks like a sound company and the article on this site has highlighted good points.
dear neontet i am no guru la, just a small time trader using technical indicators combining with some fundamental views, sometimes it works and sometimes in doesn\'t when i trade stock, i am NOT fixated about the stock price eg what price should it drop to before i buy or what price can it rise to before i will consider taking profit i would pay more attention to the support and resistance levels and also the technical indicators my thought process is such : if i am interested to buy, i start with some fundamental analysis, then i will need the technical indicators to \"confirm\" a potential buy signal for me before entering but AFTER i buy, i will ignore fundamental news and ONLY focus on the technical indicators because i trust them more than anything else after using them for so long so to answer your question about how much can it rise to, i have no idea. for now, my short term signals for this stock have turned negative since 2 days ago (parabolic sar turned down and price closed back down to 32c) so the correction is within my expectation.....when may the correction end? i also have no idea again hehe i just have to wait for the signal to turn and tell me....
thank you streamy for your interesting reply. u sound like a pro. can i ask you if you are vested in this stock, or were you once vested , or r u planning to vest or re-vest? and kindly advise what is a reasonable fair price for this sino grandness based on fundamental valuation. i believe you have an idea because you have followed this stock very well. thanks in advance.
dear neontet i am in no position to give any advise i can only share my views about the technical signals and some fundamental analysis, you have to make your own decision fundamental view, i am quite lazy to analyze too much so i usually just use forward pe which has worked well for me based on phillip and dmg reports, sino grand is expected to make about rmb90m in FY2010 and based on 245m shares, eps is about 7.5c sing at 30c, the 2010 pe is about 4x i think both dmg and phillip value sino grand between 40c to 50c range so they are giving it pe of 5.3x - 6.7x i think this kind of pe is not excessive for a consumer stock with resonable good earnings visibility but of course, i usually pay MORE attention to technical analysis than fundamental analysis la i use a few indicators/signals which many traders also use eg volume, macd, sar, price action, recent high low as i said few days ago, the latest short term signal is down, so relax and wait for it to turn up there is one support level around 27.5-28c range so it remains to be seen if this support level will be tested in the coming days
who knows when sino grandness will report 2Q results? that cld be a catalyst for the stock, may run a few days before and after. for longer term investors, 31 cents now is probably not going to get cheaper, and based on the prospects 41 cents looks possible. Just my 2 cents. at this point, no corporate governance issue expected, cos they are still busy busy with expansion of business and hv lots of IPO moneyh.