I hope it can get relisted, i think it will be hotter than hot if it ever get to trade.

and who know , becuase of this,hopefully, s-chip misery will come to an end,

Come on Gaoxian , come on board , i m waiting.

it never fail to make me $$$,

Dont be surprised at heavy selling when trading resumes (soon?). On the other hand, the management and the white knight would be anticipating this selling . So what plan do they have to stabilise prices?

My friends itching to hit the Sell button when it resumes trading. Say bye bye to a nightmare

CIMB 3 Mar 11

China Gaoxian Fibre Fabric (CGXF SP; S$0.235) – BUYHistorical P/E: 4.3x, P/BV: 1.3x

• The stock has fallen to its rising support trend line as well as its 200-day SMA.
We reckon that this support at S$0.225-0.23 is a strong support.

• As volume appears to be tapering off, we think that selling pressure is also
easing. There are also bullish divergences seen on its daily and intra-day
charts.

• Only aggressive traders may opt to get in now to long. A short term rebound
towards its 30-day SMA at S$0.31 is a good possibility. There is also
resistance at S$0.285. Place a stop below S$0.22.

As requested by some readers, here's the UOB KH report on China Gaoxian with 53-cent target price.

Attachments
 China_GaoXian_UOB170111.pdf [311 KB]

Yes, we should not be too affected by the past, Dello. However, we should also not fail to learn from our past experience and mistakes – some lessons are very expensive and painful and are best not repeated.

Below are 3 sayings that I find rather encouraging towards learning –

“Cheat me once, shame on you. Cheat me twice, shame on ME.”
[Application: Learn from past mistakes and avoid making the same mistakes twice.]
“For some people, a 10-year experience is just 10 years of ignorance.”
[Application: Learning is a life-long process. Unless one learns and upgrades one’s skill and competency constantly, one may lose out in one’s effectiveness on the job.]
"The definition of stupidity is doing the same thing over and over again and expecting different results," said Albert Einstein.

Valid points, dear observer2. However, one should not be too affected by the past, right?
Value is value - value investors seek value. 

In the bull market of 2002-2007, textile stocks generally were selling at a discount to others most of the time, probably because of the competitive nature of the business and its vulnerability to quota/trade disputes, etc in the international scene. Although there have been no such problems for some time, one cannot be too confident that they will not recur in the near future.

Penny stocks, especially S-chips, should best be treated as instruments for making money as falling in love with any of them can be fatal. In the last bear market, no S-chips was spared in the very savage sell down showing that buy-and-hold strategy or Warren Buffet style of investment could be most tragic if adopted here.

Managing risks warrants priority attention for survival in the world of S-chips or in penny stock investment. As a way of reducing risks, stocks like Gaoxian, should best be sold off after attaining a certain value (eg. PE of 10x - about 42 cts). The proceeds can then be utilized for switching to another stock with much lower valuation and downside risks. It is a good practice to leave behind any potential gains beyond a PE of 10x or 15x (depending on the type of stock and the stage of the market) to someone with a bigger risk appetite.

terrywong, could u elaborate on what you mean by 'don't see value in this counter & other textile companies'?

U mean they are too expensive on PE & PBV basisw?
Or what financial metric are u referring to - such as op cashflow?

conversely, what stocks do you consider to meet your criteria? I don't mind investing in such stocks after studying their financials.

I don't really see value in this counter or even other textile companies like Taisan. The managment and its advisors in Gaoxian probably tried to create some hype to move their share price and failed.  So far, I don't find their strategy compelling. I am glad I took profit when a research company posted cautious of this counter. I am now more careful with Taisan. Any thoughts? 

What if Koreans (or Singaporeans) re-rate stock to 12x pe?
Stock would be 48 cents?

What if 4Q earnings show strong jump?

Bro, You do an excellent posting...... I think still a buy for long term investors who have holding power.... but may not be good for short term punt.... :)

The easy money to be made from investing in China Gaoxian may well be over, at least for now. The big drop in Gaoxian’s share price after the dual listing makes the stock looks cheap especially taking into account the price offered to the Korean institutions and the hype over the very high valuation of Gaoxian peers in Korea. Question: Is Gaoxian still a good stock to invest in at Friday’s closing price of 33.5 cts?

The answer to this question could well depend on each individual’s investment objectives and targets. Gaoxian is no longer an undervalued, out-of-favour stock of a few months ago and its fundamentals are also no longer the same after the dual listing. While the good points on Gaoxian have been quite well covered earlier in Nextinsight, there emerged some areas of concern that potential investors of Gaoxian could not afford to ignore. These are -

1. Earnings dilution & reduced growth potential – Gaoxian’s EPS for FY10 is expected to be around 6 cts(S) before dilution and 4.2 cts(S) after the dilution. Its recent production expansion capacity could restore its EPS to the pre-dilution level at best. With the number of issued shares at 2.04 billion, it would require a nett profit of 204 million just to raise its EPS by 10 cts(RMB) or 2 cts(S) – a daunting task notwithstanding its ambitious growth plan for the next few years.
2. Likely Share Overhang – Many small investors have been lured into Gaoxian shares during the recent big upsurge in its share price and trading volume. Many who bought at the high end would now be waiting anxiously for a chance to come out of the “roasting pot” – (speaking from past experience of similar nature). History has shown that in a situation of this nature, it usually takes a long time before the share price can recover to its previous high as no “big boys” would be foolish enough to come along to take over the losing position of the retailers at increasingly higher price at this stage. Thus, there are likely to be numerous sellers dying to come out of their losing position at every price level.
3. Valuation – While it is a fact that the valuation of Gaoxian peers in Korea is at very much higher level, the Korean fund managers would not be so foolish as to pay a high price for Gaoxian shares on its dual listing in Korea, when they could get it much cheaper in Singapore. Many could have already bought into the stock immediately after the announcement of the dual listing. The downside risk to them then, was extremely low as Gaoxian was very undervalued.

Gaoxian closed at 34 cents, still 79% higher than 19 cents when they announced KDR listing plan.

I am curious what you all think about the price level at which you would buy Goaxian.

a) 30-34.
b) 27-29.5
c) below 27.

 

after the S-chips earthquake, what are safe to invest in for .....slow & steady capital gain, & no sleepless night?


a) construction
b)  REITS
c) banks
d) SIA, SPH.....


Anyone can share his view? 

Don't you just love Singaporeans.

If they make money from stocks, it is because they are smart and brainy and 100% their own credit.

When they lose money from stocks, it is all other people's fault, speculators, stupid investment banks, fraud management etc....

I love to watch how this exciting drama carry on.