Let's Talk Xinghe
Xinghe's bull finally meets the bear, and tastes a first rally success - 11/6/2015
Ezra
Publish date: Sun, 14 Jun 2015, 10:43 AM
Ezra
0 18
Is Xinghe the next Cinderella stock? Well, that's a question worth answering if you knew where to look for the missing 'shoe'. The shoe that I speak of are the trail of clues that lead us to Xinghe's doorstep. What can they tell us about Xinghe as a company and stock that beckon us to invest? Well, this is a blog which might interest readers on a stock that has yet to receive its fair share of coverage despite being the Cinderella stock of 2015.
Many were glad to see the initial price breakout on Monday of 8 June 2015. Around 37 million shares exchanged hands in 3 hours and 40 minutes of active trade before market made a decisive move to enter a higher price territory. Although the average velocity rate at which the shares exchanged hands in a second was one seventh the rate of what was observed on Monday last week, it was nevertheless good enough to move the market comfortably into a higher price lane without damaging the rally momentum. Had the said acquisition rate been any higher the operators might be tempted to corner the market by flooding the market with a cheaper priced transactions within seconds a risky move which we know by hindsight could backfire and kill a rally prematurely no sooner than it started within half an hour like what they did last week. Thankfully, it did not. Even then it did not stop some parties from dumping another 3 million shares during the afternoon before giving way to a higher sale.
AT has been cheering for Xinghe for quite sometime as far as I can remember. Hadn’t it been for him and several others who have been keeping this forum alive, I’d reckon I too would’ve missed Xinghe.
At the same time, it’s great we can have discussions that either support or fall into dissent as we learn to rock the boat, challenge the status quo and hopefully temper each other’s expectations with hard reality while grounding our arguments in facts and sound reasoning.
No one can tell what the price will be tomorrow. But what we can reasonably deduce today is that the opportunity for entering a fundamental growth stock while it’s still cheap may not come knocking twice.
Xinghe is probably one of the few Cinderella stocks that have not received their fair share of coverage in mainstream analysts’ writings at CIMB. Once upon a time, Ifca too was outside anyone’s radar. But of the said two, Xinghe has the better commodity, revenue and profit story to tell.
All signs based on news report and Q1 results and audited annual report since last year indicate the company is growing and financially sound and is here to stay for the long term.
The recent Monday’s net stock acquisition rate we saw earlier this week was a good beginning of a race to play catch up with Q1 results – but it’ll probably be days or weeks from now before investors can expect to reap its full value.
Till then let’s stay focused on the big moment ahead of us and not allow ourselves to be too distracted by daily price movements – that may wax on some days and wane on others.
Ezra, 11 June 2015
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
More articles on Let's Talk Xinghe
It’s time we judged Xinghe on its merits – and not tar it with a Chinese brush.
Created by Ezra | Jun 17, 2015
Discussions
2 people like this. Showing 15 of 15 comments
Not to pour cold water on you. See xinquan, another china company. PE only less than 2. Why still no people invest? Because investor have lose confident on china company. The only way to increase confident for investor is to increase the dividend payout. But is the company willing to do so? Or the company afford to do so? This create the investor question why they dun wan increase despite their high profit and high cash. Investor have no confident in the amount shown in balance sheet and profit and loss. So why investor will risk their hard earn money on the share that have high risk. Just my perception
2015-06-14 14:36
their auditor is top 5.... compared to others like CSL, xinguan, CAP.....
hope their standard is as high as top 4 audit firm.... but what the heck.... our KPMG and Deloitte has their equal share of problem after auditing 1MDB.... so where is the public confidence in Audit????
2015-06-14 17:46
Xinghe is different. Xinghe is cheapest stock in Bursa to give dividend. If follow their IPO there is 15% dividend policy for coming 3 years. At 7.5sen still very cheap compare to local stocks eg Frontkn which give 0 dividend.
2015-06-14 20:42
Vsolar(most active stocks) is loss making yet more than double Xinghe price. Vsolar likely to have right issue than ever give dividend yet local punters still chase.
2015-06-14 20:47
Just my perception TOO
pingdan Not to pour cold water on you. See xinquan, another china company. PE only less than 2. Why still no people invest? Because investor have lose confident on china company. The only way to increase confident for investor is to increase the dividend payout. But is the company willing to do so? Or the company afford to do so? This create the investor question why they dun wan increase despite their high profit and high cash. Investor have no confident in the amount shown in balance sheet and profit and loss. So why investor will risk their hard earn money on the share that have high risk. Just my perception
14/06/2015 14:36
2015-06-17 11:28
Top auditor also so what?
Auditor does not mean can detect fraud lo.
If company want to manipulate, auditor almost cannot detect, unless got special super audit lo.
2015-06-17 11:29
Auditor can check the reasonableness of the accounts presented to them only, to certain level.
Being audited does not mean free from fraud. Hahaha.
2015-06-17 11:30
The only way to regain confidence is dividend windfall to shareholders, to proof that: Yes, we truly have such CASH in the company. But would they do it?
TheEdge recent report also says Chinese Company needs a lot of cash coz their biz in china are always in cash term. Pay in cash. What a good reason to keep a lot of 'cash' in the company.
:)
2015-06-17 11:32
bukithot, if Xinghe, Xinquan are not China companies, will they subject to so many questions for not giving good dividend? As I know LCTH, Frontkn are example cash rich local stocks which never pay dividend yet local punters chase them.
2015-06-17 11:41
I am quoting LCTH(45.5sen) and Frontkn(23.5 sen) because they are more than 6X and 3X Xinghe share price yet pay 0 dividend. At least Xinghe is better to pay 0.2sen dividend albeit small at only 7sen.
2015-06-17 11:43
Don't care about all number when China stock is concerned. Just stay away.
2015-06-17 23:50
The following is an article I wrote in response to comments by Coldrisks entitled "It’s time we judged Xinghe on its merits – and not tar it with a Chinese brush" http://klse.i3investor.com/blogs/Xingheanalysis/78527.jsp
2015-06-22 01:51
Thanks pingdan for raising an interesting point on the dividend payout.
Incidentally, Xinghe has a policy of paying dividends within reason although not in fantastic amounts that could jeopardize its net tangible assets. As a company focused on growth, I don't expect them to overpay as that would be akin to killing the goose that lays the golden eggs.
Should they pay more in order to prove they're cash rich? Well, this is addressed in my article entitled "The best run companies do not pay a single dividend". Have fun reading thru. http://klse.i3investor.com/blogs/princeanpauperstocks/78715.jsp
2015-06-22 02:51
Post a Comment
Featured Posts
Introducing MY's First IPO Fund for Sophisticated Investors!
New Update. Discover investment communities that resonate with your ideas
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
.png)
MQ Trading Signals
Time
Signal
Duration
Type
2024-08-27 16:35:00
ADX
5 Mins
SELL
2024-08-27 16:00:00
ADX
Hourly
SELL
2024-08-27 15:00:00
EMA 5
Hourly
BUY
2024-08-27 12:00:00
EMA 5
30 Mins
BUY
2024-08-27 11:30:00
EMA 5
10 Mins
BUY
Apps
Top Articles
1
Koon Yew Yin's Blog
3
Stock Market Enthusiast
PBBANK: Technical Outlook Suggest Target of RM5 (Uptrend but Overbought) - KingKKK
4
Koon Yew Yin's Blog
5
6
Koon Yew Yin's Blog
7
8
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
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....
gick891214
nice explanation Ezra.... looking forward the future of this company
2015-06-14 13:18