Fundamental Analysis (Base on FY2009 closing at Dec 2009)
- PE = 56 (base on stock price of $0.39)
- ROA = 1.9%
- ROE = 3.0%
- Net Margin = 50.7%
- Net Cash from Operation = -$215 million
Comment: Current stock price is super overvalue (PE = 59!!). Poor fundamental because the YOY earning is not consistent & lousy ROA and ROE. Although the company provided a net earning of 50.7% but net cash is negative! If the company is making money, why the cash inflow is negative? I am not wasting my time to dig into the financial report to understand the detail and potential creative accounting.
Ying Li is currently trading within a Falling Wedge. Base on current chart pattern, the stock price may rebound from current wedge support if the breakout does not happen. The trading volume is fading for the part 9 months.
Ying Li does not meet my stock selection criteria fundamentally and I will not trade or invest in this stock.