With today's increase in share price (to 21p), Haike Chemical (HAIK) still has a PSR of only 0.02 - making it very good value. So what's the catch (if any)?
Well some people have noted that the borrowings are very high and that a large proportion are short-term. In the UK, this would be very bad news as these loans are "callable". However, in china, with the banks being more stable (and cash rich by omparison with the UK) there is less risk.
On a book value basis, the Company also looks good value. What do you think?
Monday 9 August 2010
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Haike has started to move significantly in recent days (currently at 28p, Fri 10th Sept 2010). Having broken significantly through the 200 day moving average, it looks set to carry on upwards. Note that it is still trading at a very very low PSR and, subject to a reasonable set of interims (due shortly), it should significantly increase over the next few weeks/months IMHO.
ReplyDeleteWell, what an interesting day! Interim results out and the share price falls by 55%. This needs a bit more investigation, to try and analyze what's going on here ...
ReplyDeleteWere there dark forces at work here, or just fear and greed (perhaps the other way around?). Any clues anyone?