China has been on uptrend for the past two weeks and currently trying to establish a good support at about $0.155 (50% Fibonacci Retracement Level) & $0.16 (200D MA). If China Hongxing does not bounce down from this 200D MA resistance, a new uptrend will start as the stock moves above 20D, 50D and 200D MA. Upside potential is huge if $0.155 proves to be a very strong support.
China Animal Health is still riding on the Fibonacci Fans nicely and the uptrend is still intact. Current level looks attractive to enter in view of the company’s core business and financial fundamental. In addition, Blackstone has also invested in this company recently and there was an insider bought about 31 million shares at about $0.30 to $0.31 in July 2010.
Financial Fundamental at a snapshot (base on FY2009)
Risks: The company fakes the financial report but I think the probability is low because Blackstone should have done a detail audit of this company before investing.
A good stock to hold for long term investment.
The recent plunge of Q&M Dental Group is expected as the stock has been climbing up very fast for the past two months from $0.39 to $0.60, a whooping 54% increase in two months! Whatever goes up fast, it come down as fast!
In addition, Q&M is over value at current price ($0.51) where the PE is still at 36.6. It is expected Q&M stock price will go down further base on TA and current PE. Q&M has punched through 20D MA support and the next immediate support is at $0.49 (61.8% Fibonacci Retracement Level). If Q&M cannot hold at $0.49, the stock may go down to as low as $0.369 (23.6% Fibonacci Retracement Level) as there are no obvious supports between $0.369 to $0.49 base on the past history.
Fundamentally Q&M Dental Group is a good stock for long term investing base on the core business in dental services. In addition, the JV to China dentist medical field is a very good strategic move for future business expansion as Chinese government wants to improve the medical services in China. The financial looks good to me too:
Basically I am waiting for a right entry level when the stock reaches the bottom and starts reversing.