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Fuqi International is finally marching higher

March 10th, 2010 · 1 Comment

This was always a ticking time bomb. Selling jewellery in the rapidly expanding market and having a p/e around 8 and having no debt never really made any sense to us…
We always argued that fundamentally there is nothing wrong with this company. The only thing we could think of is that they’re slightly cash-flow negative, but that’s the price they pay for expanding so rapidly. Here is our fundamental piece. Not much reason to change track.

Now, with earnings near, and the Chinese domestic demand rising rapidly, we think this thing can only go up. Technically, it has broken out.
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Tags: FUQI

1 response so far ↓

  • 1 Kurt // Mar 10, 2010 at 10:47 pm

    And this is how I find out you guys are from Amsterdam! Funny, because I thought you guys were Mid-West Americans.
    And living in Belgium myself I kinda doubt if I should follow advice from people who were living on the other side of the globe.

    Go figure!