China Gaoxian

China Gaoxian price hover around $0.42 and $0.425 and unlikely to fall below $0.405 here at SGX.  This counter should receive good response from the Korean retail investors and should trade well about the listing price of $0.405 especially "it is notable that  prominent institutioal investors to the KDRs include Morgan Stanley, Deutsche Bank, Nomura, Tong Yang Asset Management and Hana UBS which is a vote of confidence in the Group buiness and prospects"
Reentry at S$0.42 today and hope for a good CNY HongBao next Tuesday onwards.

Gaoxian is likely to trade at a higher price today for the simple reason that the Big Boys want Korean investors to get hopeful & excited at debut tomorrow.

If Gaoxian closes at 45 or more today, Korea will cheong tomorrow at debut.

Then it's a virtuous cycle, with Singapore market also feeling encouraged and the fun continues so long as the PE doesnt exceed 15 - which is where Gaoxian shoudl at least be saince it is the market leader in Korean textile industry.


That's why my crystal ball tells me. Maybe it is working well this morning, or maybe it is faulty as ever.......

Instead of focusing on the Korean Stock Exchange.... our SGX people should make use of Gaoxian listing there to promote all the S-chips... Tell them if you think Gaoxian at 9-10x PE is a steal.... then come and see the other S-chips... at 4-5x PE here.... like Taisan, Qingmei, Erata, etc...

On the eve of Korea listing, Gaoxian supporters put up a fierce show.

Look at the 5.2 million shares done in 1 single trade, the last trade of the day.

i427.photobucket.com/albums/pp355/bbs00/Gaoxian.jpg

Big surprise to me that Gaoxian's early trades in Korea were at equivalent of only 36 SG cents. Bombed out!

Markets never cease to surprise, do they?

However, Gaoxian's PE is too low so maybe that 's why the price has firmed up and is now doing 40cents.

More likely, the Korean market is watching the primary listing market - ie, SG !!!

SG is the one they will follow, so if SG doing 40-41, that's how Korea will be.

 
btw, the webpage for live prices is   eng.krx.co.kr/por_eng/m2/m2_1/m2_1_1/JHP...1.jsp?isu_cd=A950070

it is also good that the KDR issue is over. Started to buy back the shares that i sold previously. Current price is about 7-8x PE taking into consideration of the issue of new shares in KDR. Look more expensive as compare to other S-chip now but don't forget that Gaoxian is a market leader in their field. I am buying for medium term investment and wait for the 4th Qtr result to bring back in the short term investors...