Market benefits when an investor keeps his eyes on the horizon. The same is true for a stock like xinghe which is like a seed that has yet to germinate. When market is ready to re-value it according to known facts and figures, it will break grounds and touch a new high.

Based on past PE trajectory, tp based on Q1 2015 results should rightly traverse between 24 - 95 sen per share and 14 - 85 sen per warrant. Much depends on how soon the market will wise up.

The spectre of Chinese 'too good to be true' stocks like I pointed before is blown out of proportion and do not apply to Xinghe whose audited fundamentals are as strong as if not better than CAP.

Apart from CAP, Xinghe has been in the news since March 2014 when it was reportedly the sixth largest edible oil manufacturer in China.

There was a good reason as to why Key West Global Telecommunications Berhad voted in favour of an RTO exercise by Xinghe's principal promoter. These fundamentals remain unchanged even today. In fact, they have broken new grounds with the latest Q1 2015 results.

The only reason it has yet to escalate is because someone or some people are brazenly cornering the market for the purpose of creating an artificially low priced environment in which they can accumulate a greater number of shares and warrants on the cheap.

Does this mean we will not see a rally soon in these coming weeks? The answer is a binary yes and no.

It's a yes, if market continues to believe that neither the news report nor financial results are worth the paper they're written on. Or no, the rally may begin earlier than expected the moment market wises up to the fact both the stock and warrant are grossly undervalued.

Let's hope reason will prevail in everyone involved so we may begin to see a more sensible trading season.

                                                                                                                                                  Ezra, 7 June 2015