A signed that the stock market is crashing . Rebound and getting lowered and lowered after every rebound ! Maybe I might be wrong but please take note , trade with cautions . The is not a buy or sell call , but through my years and experiences in the stocks markets excluding the newbies !
I think is good time to cum the share.. as company fundamental no change.. The only change is retailer Fear sentiment.. and it has retraced back to 100% fibonacci retracement
Icon...not sailing.........., 20% of my portfolio...CW lost 10% each....20% of 10%.... That is 2%, sap sap Sui. You see , end result is a result of strategy and stock picking skills.. And the result is not yet....as KyY says, let's see the next results
The minority interest has been eliminate giving a boost to the EPS immediately , even without doing any thing......sap sap Sui.
Buy shares for 3 things, management, business model and numbers....theCW Taiwanese guys....they are magicians.
Still require lower price for it to be attractive, due to its large discount to the lack of moat. Also, the EU, ChinWell's potentially important market, is facing huge problem after China's win in WTO.
At least below RM1.50 before strong consideration to take position in ChinWel.
It is a relatively okay business without strong competitive advantage. Many are here due to a prominent investor and relentless recommendation by his followers. Worse still, they are betting that next quarter result will improve significantly and thus the appreciation of share price, without any significances.
Again, value investor shall search for businesses that even an idiot knows how to run, yet the businesses are unique and full of moat. Current price does not offer margin of safety. Any entry around this price is mainly due to influence of someone who has bought way earlier. Suggestion for this stock is to buy way lower to enjoy deep valuation.
I just got the reply from management of Chinwell regarding the issue on EU loses WTO case and its impact towards Chinwell. Reply as below and hope it help:
Hi,
Good day!
It is not the first time this happened. Anti-dumping Duties was first imply on Feb 2009 for 5 years. Then China raised the case to WTO and finally got a first appeal result of dropping the anti-dumping rate from 85% to 74% during Oct 2013. Of course, China is not satisfied with the outcome and continue with the 2nd appeal.
According to most of my customers in Europe, they feel that it would be the same with the 1st appeal that EU will take 2-3 years to re-investigate again on the case and may drop the some rates again just like the first appeal.
Due to the fact that the steel industry in EU is already in crisis for more than 6 months, I believe the politicians in EU will still stand strong on the issue to protect the local steel industry for people to keep their jobs.
Anyhow, we will still need to wait for the final result for the revised dumping rates, if the rate is still higher than 20%, Chin Well is still in the advantage side.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
noobnnew
973 posts
Posted by noobnnew > 2016-01-20 16:21 | Report Abuse
Means due to big drop today, expecting a lot of ppl getting margin call tomorrow and might trigger second round sell down.