Sinotel Fundamental Analysis and Chart Pattern

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Sinotel Fundamental Analysis

  • Current Price = $0.335
  • IPO Price = $0.464
  • Current NAV = $0.365
  • Current PE = 4.57
  • Rolling PE = 4.64
  • FY08 PE =6.68
  • FY07 PE = 8.43
  • Dividend Yield = None
  • FY09 Net Profit Margin = 26.1%
  • FY09 ROA = 17.3%
  • FY09 ROE = 23.9%
  • FY09 Current Ratio = 3.34
  • FY09 Debt to Equity = 0.294

Sinotel Current Chart Pattern

Sinotel is forming a Descending Triangle with the support at $0.329. Breaking below this support level will continue Sinotel down trend. Also take note that Sinotal is currently trading below 20D, 50D and 200D MA.

In Summary, Sinotel fundamental looks good and currently price is not overvalue comparing current & Rolling PE with the past PE.  As long as Sinotel can stay above $0.329, current level looks like a good entry level.

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Sinomem Fundamental Analysis and Chart Pattern

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Sinomem Fundamental Analysis

  • Current Price = $0.485
  • IPO Price = $0.44
  • Current NAV = $0.534
  • Current PE = 10.5
  • Rolling PE = 7.2
  • Dividend Yield = 2.06%
  • FY09 Net Profit Margin = 17.7%
  • FY09 ROA = 6.6%
  • FY09 ROE = 9.2%
  • FY09 Current Ratio = 2.16
  • FY09 Debt to Equity = 0.13

Sinomem Current Chart Pattern

 Sinomem is currently forming a Descending Triangle with a very strong support at $0.47 (which is also a 61.8% Fibonacci Retracement Support). Breaking below this support level will give a very bearish chart pattern for Sinomem. However, breaking out from this Descending Triangle will send Sinomem to minimum price target of $0.72. Base on current PE ratio, this stock is not over value.

Base on Fundamental & Chart Pattern Analysis, Sinomem is not for long term value investing but good for short term trading when breakout. This analysis base on my own stock selection criteria.

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China HongXing Fundamental Analysis and Chart Pattern

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China HongXing Fundamental Analysis

  • Current Price = $0.16
  • Current NAV = $0.30
  • Current PE = 15.36 (At Fair Value)
  • Rolling PE = 31.68
  • Dividend Yield = 2.78%
  • FY09 Net Profit Margin = 6.6%
  • FY09 ROA = 2.9%
  • FY09 ROE = 3.1%
  • FY09 Current Ratio = 21.3 (CASH RICH!) 
  • FY09 Debt to Equity = Net Cash
  • Net Cash per share = $0.12

What can a company do if the company is cash rich?

  1. Shares Buy Back. –> Improve EPS  –> Lower PE –> Stock valuation is cheaper.
  2. Pay Extra Dividend to share holders.
  3. As a target to be acquired by other competitor. The other company just needs to pay $0.16 per share to get $0.12 net cash per share.
  4. Acquire other company or brands to boost revenue and profits.
  5. Buy back all the shares and delist from stock market.

China HongXing Current Chart Pattern

China HongXing is currently showing a Bullish (Declining) Flag pattern. This is a continuation pattern in an uptrend. $0.155 should serve as a strong support as 200D MA support.

In summary: China HongXing is suitable for short term trading but not for long term investing due to weak fundamental. However, there may be some surprises in stock price due to the company strong cash position and the current stock price is 47% discount to the NAV.

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