Friday, August 11, 2006

China Hong

Ok, this post is back dated to last month (the follow up of previous post). Did not really have the luxury (or I should say lack of discipline) to find time to post. China Hong was always on my radar screen as it deals with sports aparrel, like the Nike of China and have over 2000 stores around China. As the Olympics will be held in China in 2008, there will definitely be a heightened passion for sports among the citizens and sales will surge.

I bought it at one of its low last month after the crash due to increase of America Fed rate. It was $1.15 then and at a very attractive valuation of PE roughly around 10. Before the crash it reached $1.76 and that was not distant past. I bought 2 lots then and sold at a price of $1.50 only 1 1/2 weeks later, making a profit of $700.

I was overwhelmed by the spike then and thought it is a good time to sell as there are lots of speculative buying then. But i make a mistake and the price never came down, it is $1.56 now and I regret the decision.


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