Dapai: It is Coming…..

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Dapai has been moving up quietly recently and closed with a bullish marubozu candle with 8.7 million shares traded today. Today closing is above the 200D MA and also 61.8% Fibonacci Retracement Level.  Technical Indicators like MACD, RSI, Stochastic, Bollinger Band and SAR Parabolic show the bull is coming back. However, this stock need good trading volume to confirm the breakout to start an uptrend.

Fundamentally this stock is super under value with PE just 3.8 (stock price at $0.245) but unfortunately no one is interested. Average PE for past 3 years = 3.6.

Base on FY2009 Financial:

  • Dividend Yield = 5.4%
  • NAV = $0.30
  • Net Profit Margin = 14.2%
  • ROA = 19%
  • ROE  = 21.5%
  • Current Ratio = 4.9
  • Debt to Equity Ratio = Net Cash

Watch closely on this stock! Good for long term buy and hold until other peoples find out this gem.

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China HongXing: Will Continue the Up Trend if ….

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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.

Continue ReadingChina HongXing: Will Continue the Up Trend if ….

China Animal Healthcare: Up Trend Still Intact

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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)

  • Net Profit Margin = 36%
  • ROA = 19%
  • ROE = 21%
  • Current Ratio = 13.9 
  • Debt to Equity Ratio = Net Cash
  • Current PE of 14.2 is not expensive for a biomedical company.

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.

Continue ReadingChina Animal Healthcare: Up Trend Still Intact