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ya agree high risk high gain for sinotel......6cents worth say for this 15mth this counter is worth a punt..max 7x return... min 1.3x return after 15mth..hsbc n another kuwait 2nd national bank seem to support sinotel in big loan....sporean nw veri scared of s share n tats e point oso.....when market sentiment for s share return i shal cum out.....truly too risky for long term 5-8yrs for s share company.....china man normally becom han du after 5 yr in business.....personal touts oni.
If I remember correctly, this sinotel is recommended as a high risk, high return counter by some analyst. But I won't touch china counters anymore after suffering from bad experience. At $0.15, I rather buy Broadway. Personal view only.
orrr understooded......i hav faith in sinotel n e kuwait H.I.T.S new chairman sultan adu........china 3G wil b a veri huge business n nw is oni a mth old......given 1 to 2 yr timeframe wil b a giant ler.
Dear Shuishui, do consider carefully what the company is doing for it's business before buying into it's stocks. The business must have sustainable income model and be profitable for a long time. One does not want any negative surprises sometime down the road. Cheap price may not mean good buy. Good buys are value buys. Paying $60k for a brand new Mercedes Benz on discount is a good buy. Paying $20k for a brand new XYZ brand car may not guarantee a good buy. Even if one is a short-term trader not holding the stock for a long time, the prospects of losing one's money from a short-term negative surprise out of a losing company can be daunting.
Consider the many companies that have given negative surprises so far during this financial downturn and it is obvious that one needs to be extremely cautious when it comes to investing one's hard-earned money.
sinofibre, sinotel, are all cheap and potential doubler at current price..
more risky ones are celestial, sino-env but if recovery will be more strong that those 2 above.
;)
shuishui ( Date: 07-Apr-2009 15:57) Posted:
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Thank u for puttin tings in basic perpective........e company is sinotel tech ltd........after my own personal reseach i would buy n hold for a yr.......wil hav 50+cent =>
Hi, is the company a long established one? What is the name of the company? To buy stocks of a company as a short-term investor and even more so as a long-term investor, you need to know whether this company is fundamentally sound and whether it can be profitable for a very long term. This is very important. You need to understand what the company is selling (its type of products/ services) and who is it's target consumers. This will inform you whether the company's business has sustainable income and even is profitable or not for the long term.
Does the company have any competitors and is the management good? This will tell you whether the company face any pressure from strong competitors and potential drop in earnings margin.
Is the current liability of the company more than it's current assets? Does the operating cashflow shows a strong positive figure? This will tell you whether the company is in potential of running into cashflow problems or not. And, if the company has more current assests than liability, it can still pay off it's liability for the short-term. A strong positive operating cashflow coupled with a high current assests to current liability ratio shows that the company is at least financially stable for the short-term.
How is the company's past results? Does it show consistent growth in earnings and return on equity for shareholders? A good company maintains good records of earnings growth and return on equity for shareholders over a good number of years (at least 10 years of consistency and still improving). This also indicates a sound and efficient management which has been creating good shareholder value over the years and may be likely to do so in future too.
After one is sure of the background and profitability of the company, then one can look at the price of it's share, NAV, PE ratio, and also calculate it's intrinsic price value per share to make sure one is not paying too much for the company's worth. Fundamentals help one to select sound and profitable companies to invest. No use just buying any stocks of companies which are cheap that one does not even understand the business of the company. It is very dangerous to put money into something one does not understand at all and risk losing all the money. This maybe equivalent to gambling.
kuwait listed company had bought a 55% share in a S company in usd60M end '08.....sgd50+ cent a share n now e company oni trading at sgd1.45cents @_@ 3G netwrk had touch china oni nw n e company had a book-order of rmb 300+M n set to finish late may '09......do al bros n sis tink itz a golden nest since its PE its oni 1.7 nw n nav is sgd0.31cents =D......china gov. ready to spend 300+B to build e basic netwrk for 3G n 700M user in their state nw oni 37%....open 2 comments....truly need help cus i hav oni 10+k in savin n i wanna 2 invest nw.