Hey, let\'s start a pasar malam with shouts of \'lelong, lelong\' and highlight the very cheap and very good stocks. Share your stock pick(s) here. Give some reasons for your pick(s).... Let\'s drink to solid picks that will be multibaggers not too long from now!
I would pick Bright World, which has just reported 50% jump in net profit for first half \'08. There is a takeover offer at 70 cents but the stock is now at 45 cent level. More discussion at the Bright World thread......
Don\'t time the market , let\'s the market time you ! we will never know when is peak or bottom ? at current level myself consider very cheap already !
The veterans would term the current situation as a trading market. There is no fundamental involved, only \"puntamental\". I would suggest to go for companies with likely possibilities of M&A or privatisation. Some ideas to consider-- Broadway is a supplier of actuator arm to Seagate and HGST. This is a good takeover candidate for its sizeable sales and profitability in the HDD space. However, its negative free cash flow issue remain a concern as most private equity firms need the free cash flows generated to supplement the take-over. Portek has already told the whole world that it is up for sales. If you evaluate the history of the Company. You will find that the management has done a lot of write-downs in the past 12 months. This is an exercise that a Company usually does prior to a take-over bid. My own guesstimate is that a GO offer for Portek will materialize in less than 6 months\' time. Lafe Technology is a company where the majority shareholders have been quietly accumulating shares in the open market. It is trading below its book value. However, earnings have been declining since its listing. It is on my radar screen for privatisation.
Other than the \"special situation\" takeover target companies, the going concerns that are cheap are: The textile industry. But one must be selective as you\'ll see more segmentation in terms of results rather than the rising tide lifting all boats. Go for the market leaders and those with a competitve edge rather than just any textile player.
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