Cacola   

Advice on this stock

OCBC has a BUY on Cacola. Cacola's net profit margin improved from 16.5% in FY06 to 24.1% in 3Q07 as the tax holidays set in. After factoring listing-related expenses, they expect net profit margin to sustain above 21% in FY07 and FY08, substantially higher than its peers' average of 6.9%. They are projecting a 24.3% YoY increase in revenue to RMB566.5m and a 63.4% YoY surge in net profit to RMB 122.9m in FY07. For FY08, they project revenue and net profit to climb 36.7% and 32.6%, respectively. Cacola is trading at an attractively low 6.1x FY07 PER. Based on 8x FY08 PER, they derive a fair value estimate of $0.75.

 

Take a break from the dull market and enjoy a piece of good guitar instrumental <=(click to enjoy)

 

 

It is seem to me that many brokerage firms are recommending furniture companies like cacola and man wah . Their target price is almost double of their current prices now.

Is it really that good?

Can venture some in these china furniture company stocks?

 

should i up loss or hold the stock as i entered at 0.535? Anyone with some advice?

 

Grey in the 50's, anyone?

 

Study the fundamentals and income drivers of any shares b4 buying them.  Follow the learned singaporeregal, who would buy any share ONLY after observing its movements for, say, a month.   Why park your hard-earned $$$ in Cacola when there are other better  counters?  Don't always buy penny stocks as funds are not likely to be interested in buying them.  Without their support, a stock will remain ONLY a "punting" stock for traders for  a long long long time!   No offence intended to traders.

 

what is a reasonable entry price for this counter?

 

the price of this counter is too high now, need to be careful.

 

Anyone got any advice on this stock?