Ying Li – Fundamental & Technical Analysis

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.

Technical Analysis

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.

Leave a Reply