Bought China Gaoxian @ 0.34

I bought 5,000 share of China Gaoxian @ 0.34 cents per share.

China Gaoxian Fibre Fabric Holdings Ltd., an investment holding company, engages in the production and sale of yarn and fabric products in the People's Republic of China. The company's products include fully drawn yarn, drawn textured yarn, blended yarn, triangular-fibre Yarn, and warp knit fabric. Its products are sold to textile and garment manufacturers under the HuaGang and DaHuaWei brand names for the manufacture of apparels, upholstery for automobiles and aeroplanes, sports shoes and headgear, curtains, bedding, bags, and umbrellas. The company was incorporated in 2008 and is headquartered in Huzhou, the People's Republic of China.

Some key data related this counter:

1. Book Value per share 1.1325RMB (abt: 0.222SGD) & total cash per share 0.412RMB (abt 0.081SGD);


2. 52 week trading range was 0.15 - 0.47.
    Hit historical high on 4th Jan @ 0.47

3. Average Net Profit Margin from 2006 to 2009 about 27%.
    2010 3 Q: 21.79%

4. ROE from 2006 to 2009: 34.12%, 36.29%, 55.59%, 43.54.
    Most recent ROE 29.44% from Yahoo fiance

5. Current ratio increased from 2006 1.09 to 2009 3.77.
    Most recent data from Businessweek: 4.9

6. Debt to Equity ratio increased from 2006 1.22 to 2009 4.00.
    Most recent data from Businessweek: 4.6.

My main trigger point to take a bet on this counter was due to its shares price dropped from 0.44 to 0.34 on 1st day (25th Jan) of dual listing its Korean depository receipt. Overall this counter's fundamental (profitability, ROE, P/E ratio, and financial health) are still looks all right.

My exit point for this counter will be 0.25 (abt 26% lost) and I am willing to hold this counter until the company release its full 2010 financial result enable me to make further decision.