AAC ACOUSTIC (2018) – High P/E Ratio? JP Morgan Increased Its Stakes. September 26, 2006
Posted by Michael in Hong Kong Stock Market.trackback
AAC ACOUSTIC (2018) principally engaged in the manufacture and sales of acoustic related products.
Generally, I wont buy or pick a stock that has high P/E ratio. 2018 is a good case for us to investigate and keep our eyes on it on how the show gonna perform, whether it is a good show or a bad…….
Ok. Last checked revealed that 2018’s P/E ratio is about 28x. Not sure if this is an updated figure as 2018 just released its earnings 3weeks ago. Two good points to consider here. First, 2018 released a good earnings report and earnings increased by 107%. Second and major factor to consider is, JP Morgan increased its stakes on 2018 to about 15% on September 4, which is two days BEFORE the earnings report is released. I not gonna discuss the reasons behind or what are the indication why JP Morgan increased its stakes before the earnings report is released.
Be aware that JP Morgan increased its stakes on Long position as well as the LENDING POOL. Check this out:
On July 26, 2006:
| Total number of shares | Percentage figure (%) | |
| Long Position | 186,889,280 | 14.98 |
| Lending Pool | 32,944,000 | 2.64 |
On September 4, 2006:
| Total number of shares | Percentage figure (%) | |
| Long Position | 188,061,280 | 15.07 |
| Lending Pool | 34,116,000 | 2.73 |
From the chart, 2018 is sort of making a double top, with $9.49 being the recent high as well as 52-week new high. The stock declined sharply since mid of September and currently testing the support of $8.30.
So, is 2018 a good buy? Personally, I wont buy/pick a stock that has high P/E ratio. But, 2018 is a good stock for us to study in deep on how the big player gonna performs the show.
2018 closed at $8.59 today. A move above $8.70 on tomorrow is an good indication that this stock has good momentum to move higher. $9.50 is a strong resistance level and $8.30 is the key support level.
Click here for AAC ACOUSTIC (2018) daily chart and latest price quote: http://www.aastocks.com/eng/StockQuote/default.asp?symbol=2018
