Readers' Top Picks (Part 1)

Tough going man. The high recommendations here have given up their gains.... such as Qingmei and Ziwo. But I think they are fundamentally good stocks at this price level to buy into.  I mean Qingmei at 28 cents and Ziwo at 33 cents. Just my 2 yuan worth.

China Fibretech now only 8.5 cents - due to Hongwei suspension people got jittery about textile companies? There is a huge margin of safety here because the 13.5 cent cash looks like a lot of cushion

13.5 cents of cash? given the bad press and the need for special auditing for some of the S-Chips, Fibretech should make an effort to buy back its own shares or give a handsome dividend.
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[Del 01-03-2011]:
China Fibretech now only 8.5 cents - due to Hongwei suspension people got jittery about textile companies? There is a huge margin of safety here because the 13.5 cent cash looks like a lot of cushion

QUOTE WARREN BUFFETT:

Leverage, of course, can be lethal to businesses as well. Companies with large debts often assume that
these obligations can be refinanced as they mature. That assumption is usually valid. Occasionally, though, either
because of company-specific problems or a worldwide shortage of credit, maturities must actually be met by
payment. For that, only cash will do the job.
Borrowers then learn that credit is like oxygen. When either is abundant, its presence goes unnoticed.
When either is missing, that’s all that is noticed. Even a short absence of credit can bring a company to its knees.
In September 2008, in fact, its overnight disappearance in many sectors of the economy came dangerously close
to bringing our entire country to its knees.

Stocks listed here will have a lot of challenge to reach their posters' target prices by end of March. The over-optimism that pushed prices up in Dec & Jan is not going to return anytime soon, so guys we learn something here. It is that stocks are subject to volatility that is beyond a company's control, so even if they are doing well ( or unchanged) the prices can go down 10-20%.

For those with a longer term investing horizon & some spare cash, this is a good time to buy the stocks that have been pushed down? Anyone got strong views on certain stocks??? Pls share .

I still stick by my choice of chinafibreT , but will give up Hu an for techcomp, catalyst being the dual listing plan. Management has been great, consistent in performance. I was very worried about the currency impact on it's profits, given the low us dollars vs the high yen. Cost in yen, profits in US dollars, yet it is a non issue, this management has learn from past lessons and have really execute it's plans well. Thus i am rather confident in their execution of dual listing plans. The only problem facing china fibre T is the recent acc scandal, s chip will be down for a period of time. I am betting that it's books are clean, which will means china fibreT is a steal at current price. Remember prices was depressed due to its poor earnings, yet earnings has turnaround strongly and with many indicators pointing to the profits momemtum to be sustained, at the very least up till q 1 this year. Company is Attractive not just for it's cash per shares, asset per shares but also it's earning per shares. With Jan receivables of 46 million already lock in, 60 days of turnover, 80 million of receivable as of dec, it will be conservative to say china fibreT will achieve revenue of 100 million rmb for q 1 which translate to a high utilization rate of 80%. no reason why this stock should stay depressed for so long with it's strong earnings, balance sheet, and assets. I believe as long as external factors remain as there are, the price will start to move up closer the release of q1 results. If strong q1 results is confirmed, then 1H is all it needs to move to a fairer value of 11-12 cents, at least. Well barring rocketing oil prices or other external problems. I expect the PRC to further tighten monetary policy and hence expect more interest rates hikes. Hence, I will re enter Hu an if the price drop further since it has some large short term loans and has not give any indications if they are renewed. With the high cash and possibly high earnings, and it's upgrade to equipments that is less polluting. ChinafibreT will be less affect with the tightening of credit or environmental rules. Another company which I am waiting to increase my holdings will be Fuxing.