Foreland: Co has had good 3Q results, Rmb96.2m, +32%yoy and net profit Rmb18.4m +89%yoy. Co has shown recovery in revenue, gross margin and net profit figure in past 3 quarters, picking up after the downturn and poor end 09, early 10 figures. Construction of Anhong production facility has met with several delays...
Co trades at slightly higher P/E of 11.97x, and in comparison, other chem-fibre cos, China FibreTech at 4.07x, Li Heng 8.77x and China Gaoxian 7.21x. Growth in 3Q was significant 3 times that of prev quarter and if recovery continues can justify slightly higher valuations...
Counter on uptrend since start of Jan 2010, likely driven by results, currently in overbought condition. Today’s surge in volume is anomalous, with spike up in falling MACD, not driven by any news except Gaoxian's listing. Support at $0.105.
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