Regarding Sino Hua-An

I had several postings on the stock called Huann on Seng's chatbox. I have decided to write a brief comment on it here.

I had actually wrote a bit on the stock on Sahamas forum, http://sahamas.net/forum5/5799-1.html. See posting #2.

Huann reported its earnings the other day. Here is a compiled table I got from Star website.

From this set of tables what do you see? What do I see?

I see a relatively flat earnings with no growth.

On a quarter-to-quater comparison, earnings went from 37.442 mil (07 Q4) to 35,567 mil (08 Q1) to 36.916 mil (08 Q2).

That's how I see it. Do you see any difference?

And do note that 08 Q2 earnings, sales revenue shot up to 434.426 million. However, earnings only increased so slightly from 35.567 million to 36.916 million. Now one can take the calculator and compute the earnings margins but one should be able to spot that there is tremendous pressure on its earnings margins. Would this be a worry?

How?

Just from the earnings alone, how would you evaluate this stock?

The earnings are decent no? But there is NO Growth and now earnings margins is under massive pressure.

And would this be one reason why potential 'investors' or buyers would be worried about?

And what about the company's product? IMHO this is also a huge concern because the past couple of months, metallurgical coke and its by-products have had one MASSIVE bull run. Prices had been extremely favourable and logical reasoning would suggest that this favourable coke prices would have boosted Huann's bottom line. But as we can see above earnings table, this coke bull run did not translate to better earnings for Huann. Would this be a concern since we have here a company whose key product is having one hell of a bull run but yet the company produces flat earnings. What does this say about the Quality of the company and the Business? Not very good yes? Do you reckon such reasoning is flawed?

But ... but... but... the market has thrown Ze Screw ball for players to practise their forehand and backhand, underhand slices or smashes. :P

The deemed PE multiples now for Huann appears incredibly cheap and less me forget that Huann has a strong cash balance sheet - bank cash balances totals more than 75 million with no debts.

How? Do you want to buy this 'average' company that is now selling at a cheap price?

ps. The recent quarterly earnings is the 5th quarterly earnings reported from Huann since its listing. Perhaps it's much early days...

Huann last traded at 54 sen.

Here is the stock chart of Huann.

Do you think Huann stock price can go up?


Ah... in the stock market... anything CAN and WILL always happen.


A stock like Huann like all other stocks do stand a chance to go up for a nice small gain on Tuesday... but who knows for sure? I for sure do not know.. i never do. And if you think you can make some moolah here... go ahead man... it's your money, your decision... me? I am only stating my FLAWED views as always.


Cheers and Good Luck.