Today I bought 5,000 share of Best World International at 29.5 cents per share.
I have three main reason to have a bright side on this counter:
1. Net Asset Value Per Share: 23.64 cents - 83% of current stock price;
2. With approximately $33.4 million in cash and cash equivalents which equal about 16 cents per share - 56% of current stock price;
3. 52 week trading range was 0.27 - 0.43.
Of course there are some downside risk to noted as well (quoted from 20103Q report):
1. Group revenue for 3Q2010 declined 21.9% as compared to the same period last year.
2. Net decrease of $2.7 million in cash and cash equivalents in the cash flow statements during the reporting period is mainly attributed to the Group's payout of dividends amounting to $2.5 million.
I have three main reason to have a bright side on this counter:
1. Net Asset Value Per Share: 23.64 cents - 83% of current stock price;
2. With approximately $33.4 million in cash and cash equivalents which equal about 16 cents per share - 56% of current stock price;
3. 52 week trading range was 0.27 - 0.43.
Of course there are some downside risk to noted as well (quoted from 20103Q report):
1. Group revenue for 3Q2010 declined 21.9% as compared to the same period last year.
2. Net decrease of $2.7 million in cash and cash equivalents in the cash flow statements during the reporting period is mainly attributed to the Group's payout of dividends amounting to $2.5 million.
3. The Group remains cautiously positive for the next quarter. Management expects that pace of recovery will not be rapid due to the following factors:
- No new product licences will be issued by Indonesian authorities for the remaining period of 4Q2010 due to possibility of Indonesia adopting the ASEAN Cosmetic Directive in the short term;
- The possibility of political unrest happening in Thailand cannot be ruled out. Any prolonged unrest in Bangkok is bound to affect the Group’s activities in Thailand;
- While Myanmar’s contribution to the Group’s revenue is based on export price and hence has a lesser impact, any unrest in the Country following the elections may result in a clamp down of gatherings, thus affecting the Group’s ability to achieve revenue forecast.
4. Although the Group continues to place the highest priority on cost control and operational efficiency, administrative expenses are expected to increase as the Group builds the local support team for its new RCs in Vietnam, Korea and Philippines.
In conclusion my exit point for this counter set at 20 cents (about 30% lost) and my profit point set at 44 cents (exit @ 10% down 40 cents) and above.
14.01.2011 Notes:
After few days morning of this counter's daily price movement, I noticed that daily low trading volume for this counter. Before the company release full 2011 result, I believe this stock will continue trading at such low volume and small price change range.
In conclusion my exit point for this counter set at 20 cents (about 30% lost) and my profit point set at 44 cents (exit @ 10% down 40 cents) and above.
14.01.2011 Notes:
After few days morning of this counter's daily price movement, I noticed that daily low trading volume for this counter. Before the company release full 2011 result, I believe this stock will continue trading at such low volume and small price change range.
