Top S-chips (how they have done in 3 weeks)

musicwhiz
Offline
Premium Member

15 years 2 months ago #1144 by musicwhiz

Replied by musicwhiz on topic Re:Top S-chips (how they have done in 3 weeks)

I think the correct point to note here is how the companies manage their cash. Capex is easy to embark upon but hard to \"pull out of\" once conditions change, such as the sudden onset of an economic crisis and credit crunch. Also, expansion plans are mostly predicated upon rosy future conditions which unfortunately, have not come to pass. It\'s good to be mindful of whether the Company is doing a good job of allocating its capital in terms of not just capex spending but also by analyzing the cost structure of the company and whether it has economies of scale in the industry which it operates. Strange thing to note is that although many S-Shares have massive cash balances, they are not paying a dividend at all. Question: If expansion plans and capex needs to be scrapped in light of falling demand, and there is excess cash floating around without being put to good use, why retain it instead of paying a decent dividend ?

Please Log in or Create an account to join the conversation.

Tony Adams
Offline
Senior Member

15 years 2 months ago #1145 by Tony Adams

Replied by Tony Adams on topic Re:Top S-chips (how they have done in 3 weeks)

The current market throws fundamentals out of the windows and focuses on the \"bad\" news. Heard Fibrechem\'s board of directors called for a trading halt in the middle of the board meeting because the auditors of Fibrechem refused to sign off the accounts. This has affected sentiments throughout the entire S-chips. Hongxing, Synear, Devotion, Yanlord etc.... Even companies with good management and fundamentals like Yangizjiang are bashed down for no reasons.

Please Log in or Create an account to join the conversation.

Gary Teh
Offline
Elite Member

15 years 2 months ago #1149 by Gary Teh

Replied by Gary Teh on topic Re:Top S-chips (how they have done in 3 weeks)

Where did you hear the news about Fibrechem? This is really bad and it will hit like a tsunami for all S-Chips...never seems to end...S-Chips..Sinking-Chips. Can\'t the Chinese ever learn to be trust worthy?

Please Log in or Create an account to join the conversation.

sean.ng
Offline
Senior Member

15 years 2 months ago #1158 by sean.ng

Replied by sean.ng on topic Re:Top S-chips (how they have done in 3 weeks)

yup, fibrechem seems to look bad after falling 40% in a single day, calling for a suspension. Would that mean for china stocks, once good news start flowing in, the entire hoard will be lifted to become Soaring-chips in time to come?

Please Log in or Create an account to join the conversation.

musicwhiz
Offline
Premium Member

15 years 2 months ago #1159 by musicwhiz

Replied by musicwhiz on topic Re:Top S-chips (how they have done in 3 weeks)

\"Good news\" as defined by positive developments can only occur once the global malaise is liften and more clarity emerges on whether the economy can pick up from its current doldrums state. Seeing that we are still in the early part of a severe economic recession, there will definitely not be much good news to cheer about. However, do note that the stock market will react in anticipation to economic recovery; thus by the time news of recovery is out, the market may have moved up substantially. This is why it is so hard to time the markets - because of inherent uncertainties present in economies.

Please Log in or Create an account to join the conversation.

sean.ng
Offline
Senior Member

15 years 2 months ago #1161 by sean.ng

Replied by sean.ng on topic Re:Top S-chips (how they have done in 3 weeks)

so, 2009 should just hibernate & stay asleep throughout the bad news?? so that will not get affected by any news and by the time wake up, all are clear & bright, most companies having survived the crisis.

Please Log in or Create an account to join the conversation.

Time to create page: 0.201 seconds