Thursday, September 1, 2011

Cash Rich S-chip

S-chip companies had been badly sold down during past few months. Even those performed relatively well are not able to avoid it. spikes&curves look into some of the S-chips with large cash holdings vs their share price.

1) Changtian 
FA: Disposes some of their unprofitable business operation and company has been coping with rising raw material cost which reduces their profit margin. Near term business not much turnaround.
TA: Trading at very low price. Near all time low.
6 mth EPS: 1.84 RMB
Cash holdings: $0.219 per share. (currently traded at $0.055-0.06)

2) China fibertech
FA: 6 mth 2011 earning improved. However, management mentioned order had dropped in q2. Nevertheless, should maintain profitable for 2011.
TA: Damn low.
6 mth EPS: 5.0 RMB
Cash holdings: $0.166 per share (currently traded at $0.05-0.051)


But do you dare to buy? spikes&curves do hold the above mentioned two counters.

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