Jan 2, 2007
I hope everyone enjoyed the Christmas and New Year time. The market will be opened again tomorrow for 2007. The world markets had a nice rally in general, and this should help to give wall street a lift for tomorrow.
The MCAD on Nasdaq is showing some weakness here as it continues to trade sideway and MACD declines. The real test will be in about 2 weeks when MACD reaches near 0, and when the earning announcement season begins.
FFHL
was approaching the $20 target before the sell off last Friday and traded as high as $18.43.
BNSO
also had a good time last Friday and closing at $4.96.
One member had asked about CPSL on the forum. I tracked it last Friday at $7 and made closing at $10.75. Basically Partner Success Holdings Limited (PSHL) completed a reverse takeover of OLAB. There are about 26.98 million shares outstanding for CSPL and the actual float is near 1 million. The current market cap for CPSL is $290 million.
The SEC filing provided the following information on PSHL.
- the revenues and net income of PSHL and its Subsidiary during the fiscal year ended June 30, 2005
were $53,144,601 and $6,366,441, respectively
- 2005 EPS is about $0.23
Very little information can be found for year 2006. Giving the best scenario for a 100% growth rate from 2005 to 2006. The EPS will be $0.46, and making forward PE as about 25. It's unlikely for PSHL to have a 100% increase in EPS when the steel price not up 100% and energy cost increased. CPSL was a bargain at $7, but I will be more conservative at this price level. CPSL was drive up by momentum instead of fundamental.
The chart on GLGClooks interesting again as MACD about to cross positive and consolidating in the 1.50s area. It can go up 20% easily from here.
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