Michael’s Trading Blog

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:

On September 4, 2006:

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

The principal activities of Emperor Int’l Hldgs 0163 are property development and investment, provision of securities brokerage, margin financing services, consultancy and advisory services and hotel operations.

Last check revealed that the P/E ratio for 163 is only about 3.6. Hmm…. something that worth to investigate about… but, sorry, I am not a CPA or CFA…. My knowledge on this sort of ’thing’ is at so so level only… I am more on technical trader with market sentiment observer….

Penta Investment Advisers Ltd & UBS AG are adding up their stakes on 163 in June this year and since then 163 is rebounded from around $1.50 price level to as high as $1.80. After making that high, the stock is consolidating in between $1.70 to $1.80 level.

$1.70 is the recent low and I believe the market is testing this support level. So, $1.74 is a good entry condition if there is a move into this level and bear in mind that $1.70 is a crucial support level at this moment.

Click here for Emperor Int’l Hldgs daily chart and latest price quote: http://www.aastocks.com/eng/StockQuote/default.asp?symbol=0163

China Water   0855

The results following the shift and realignment of the Group’s business focus is first witnessed in this year’s financial report. The addition of 3 majority owned water supply companies in Jiangxi and the acquisition of a 50% interest in Conseco Seabuckthorn Company Limited, a previously state-owned company, engaged in the Seabuckthorn related business and with the significant downsizing of the remaining electronic businesses at the end of 2005, the Group has completed its business transformation to an integrated water supplier and a provider of sewage treatment services.

Source: China Water (0855) Annual Results Announcement

Again, worth to mention again that companies that are making losses or no earning growth are definitely out of my radar screen, except on very certain strict criterias and conditions.

From the shareholders’ interest disclosure, I noticed that in past 3months, there are 3 funds companies adding up their stakes on this 855, Atlantis Investment Management Ltd, L-R Global Partners, L.P. and Charlemagne Capital (IOM) Limited For and on behalf of Managed Fund.

Well, is this a bullish and good sign for 855? There is nothing can be confirmed until we can forsee the up/down trend for this stock 3months from now.

I believe water business is boiling hot now around the world and this time, the group is really doing something ’serious’ on it main principal business.

855 is already frying high and hot since end of 2005. Can we expect further up move from current price level? Major funds players are adding their position at the average cost around $1.5, yet Deutsche Bank’s cost is only about $0.50.

So, if we are looking for another $0.20 profits from current price level, then it is a good try. If there is a move above $2.05 on Monday, I think it is a good trading opportunity.

Click here for Chine Water daily chart and latest price quote: http://www.aastocks.com/eng/StockQuote/default.asp?symbol=0855

Haier Elec   1169

Principally engaged in (i) the manufacture and sale of mobile handsets; and (ii) the manufacture and sale of washing machines.

The Group continues to be the leader in the washing machine market in the PRC. Sales of washing machines amounted to HK$3,312 million in fiscal 2005, up by approximately 20% from the year 2004. In view of the growth in sales, a new factory with an annual production capacity of approximately 1 million units of washing machines has been established in Jiaonan, Shandong Province, the PRC in the fourth quarter of 2005 with a focus on manufacturing products for exports. The new factory has boasted our total annual production capacity to more than 6 million units. To cater for further increase in demand, the Group is planning to set up another production base in Chongqing, the PRC which will add a further annual production capacity of 1 million units of washing machines in the second half of 2006.

Source: Haier Elec (1169) Annual Results Announcement

Can Haier turnaround after the annoucement for an agreement to acquire the washing machine and water heater operations of Qingdao Haier Group Holdings (BVI) Lt (Haier BVI) for 900 mln hkd. Haier BVI, which holds 26.14 pct stake in Haier Electronics Group, is wholly owned by the parent Haier Group.

In my trading decision, technical and chart patterns will be 90% and 10% of the remaining, I will look at the fundamentals and any influencing news being announced recently. Companies that are making losses or no earning growth are definitely out of my radar screen, except on very certain strict criterias and conditions.

I still cant figure out what the parent companny gonna do with this 1169, but Haier is a world famous brand yet 1169 still didnt reflect the actual price valuation. Any further capital injection in future? Patience, patience and patience…?

The stock is consolidating around $0.20 – $0.25 level in past 3 months, after a high in mid of April with the price of $0.345.

Should we consider this as the low and a good buying opportunity? Well, based on the Risk/Reward returns, yes. But, I think this stock is only suitable for short-term trading as this moment. The stock did try to make a move in late August to as high as $0.265 from $0.227 before retraced to current price level. I believe the overall market sentiment did bring some influences on this retracement.

If there is a move above $0.242 on Monday, trader can jump in for any good short-term trading opportunity.

Click here for Haier daily chart and latest price quote: http://www.aastocks.com/eng/StockQuote/default.asp?symbol=1169