August 2010
August 31, 2010 –
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RELATED TICKERS: CSCO
With an RSI at 28.6, CSCO looks for a technical rebound. the stock is actually to oversold and reach a support at 19.8 [more]
August 31, 2010 –
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RELATED TICKERS: SPY
, QQQ
Sebastian Toro [more]
August 27, 2010 –
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RELATED TICKERS: NIVS
Sometimes you just find the kind of stocks that really can give you some money....most of the time you look at the numbers and cant believe what you see, and a few years later the stocks going to the sky while the big players make some money and you dont. [more]
August 27, 2010 –
Today I wanted to do a little coverage on CHINA SHUANGJI CEMENT company quoted on the OTC market under the nemo CSGJ as we see here a very interesting opportunity for long-term investment for investors with a high risk profile and have a small portcentaje of participation in a diversified portfolio.
Before starting with the figures and recommendations is to be noted that it is a very small company, is a company dedicated to the production of cement in China and listed on the OTC market and with these characteristics has everything to be classified as high risk.
As I said, the company is engaged in cement production and currently produces around 1.5 million tonnes per year and by the end of this year a new is going operational to increase its production by 60% to 2.5 million tonnes.
Today was just released news that negatively impact the stock price to levels of 0.42 usd. the new was that one of their plants is in a 2000 list of companies that must improve or close some production lines due to contamination that is being generating and is part of a Chinese government program to improve environmentally.
Athough no dates have been said and it will be a long process. in the worst case the closure of this plant by 500,000 tons would impact the company's production is offset by the opening of the new plant that would raise the production in 1.000.000 tons and receive a monetary compensation.
(The company currently has four plants and the end of this year would come into operation one fifth)
The news in my opinion has been widely discounted by the market at current prices as the valuation metrics for this company are simply absurd, and while it may be classified as a "penny stock" and should look carefully, a participation in a portfolio of around 5% to 10% seems attractive as a risk exposure.
For today the company is listed under four times earnings (P / E of 3.5) and is listed at just 0.4 times its equity. These metrics have no sense, because the company has been with steady profits and this year with the opening of its new plant could increase profits by up to 50% to 7 million dollars and this way would be trading at only 2 times projected earnings (PE 2 FW)
The company currently has a demand greater than its estimated production capacity and that this trend will continue over the following years. [more]
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