China news is what pushed Huaan to 0.47 today, however intraday short sellers took advantage of it, i agree with js2120 that the shares by now are oversold, rebound on the make for tomorrow onward.
@ thelengend27, your theory is not so bad, buying at 0.445 and selling at 0.465 everyday, since 3 days now. However, I am afraid that now everybody is queing to sell at these levels and big investors know that too, this time they may buy all these share and keep going up with no return and we end up loosing our share for cheap at 0.465!!. You will never know if the share will fall next time reach 0.465!!, would you?. I better stick to my share regardless, i hold strong or even buy more once opportunity like today happen.
Its like been scared from your own shadow! If they hold, share will move up, actualy they are creating the sentiment for the share to drop, by keep selling the share every time with few cents margin.., on and on..
Annual report is due first should be 28th April as per last year. Qtr report due end May. The annual report is important as well as its an audited report of the financial results announced so far. It will prove to the market the reliability of Huaan as redchip company in terms of proper financial reporting as opposed to others redchip which plagued with questionable accounting practices.
Huaan PE now is only 5x, recommend buy and keep, in one month from now there will be the audited annual report, Q1'18 results and AGM, all expected to be shown a good results.
My TP above RM0.80 in short term have not change. Huaan buy coking coal with 8% discount (unwashed), and sell 85% of coke and 15% by product such as Tar, benzin, etc.. Tar used for Aluminium, price is moving up very fast. Coke price now is about RMB1,860. Coking coal price is about RMB1,260, hoever Huaan buy his coal cheaper with discount as mentioned. Last QR (Q4'17) production rate of coke was 215000 tons. Q1'18 coke price average was about RMB2,150, higher tgen previous one.
Effects of better GDP in China (which will translate into higher consumption) will be felt these two days. Earlier two days, uncertainties over US action on Syria have caused a cautious stance among funds, and retail investors. Now, that appears to be nothing but a small issue and with good China GDP results and a shift in focus on earnings, there is a good chance that the rebound will happen today or tomorrow. Watch before noon action.
China 2025 plan is sufficient for Huaan to remain profitable, in the coming 7 years since cooking coal price and coke price move up and down relative to each other so that the profit margin could be maintain.
Note that Huaan buy his coking coal unwashed and pay a discounted price of about 8% as mentioned in his quarter report and company website. Its is also worth to follow Tar and benzen prices these are up due to US sanction on Russian Aluminium.
I can't find a good reason for the selloff in the market. Overall market sentiment around the world and across Asia is good. All others market is green. Foreign fund has been net inflow into the market for 2 straight weeks. Looking at the market now seems like it's going to be huge net outflow this week. Have to wait for 4pm when London market open to be sure of the sentiment since it's the London market that lead the selloff yesterday. If the market does not rebound by then then most of the fund will follow suits to withdrawn from Malaysia.
We have an GE coming May so that might be the reason for it. Foreign funds do not like uncertainty so many will choose to wait and see at the sideline till the dust settle.
Having said all that I firmly believe in Huaan fundamentals and the strength it displayed for the past months. There are huge interest in this stock with huge upside potential so I'm riding the storm (if there is one) with it.
@TheLegend27, Betta68 shared a lots of good information that enable you to evaluate the potential of Huaan as a business. Over the long term as a good business Huaan will make more and more profit and that will be reflected in the share price (it's called investment) eventually but short term share price volatility is impossible to predict (it's call trading or gambling if you prefer)
General market sentiment - Klse is down. Although no apparent reason. DJI up 2 days.. KLSE no energy. GE14 is too far away to be the reason down today. Suggest to add and hold
u guys make money only 0.01 cents? aiyaaa..main forex ka apa u alls beli pagi hari ni beli untung 0.01 cents jual petang? come la ini saham maaa..beli dump la dapat dividen sikit..tapi u alls manyak kaya maaa beli 10 juta share untung 0.01 cents..huhu
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....
greenback
59 posts
Posted by greenback > 2018-04-17 18:15 | Report Abuse
Beli petang ni, jual pagi esok..can also make money like that..haha