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Stock update; Fuqi the next one?

April 29th, 2009 · 1 Comment

We’ve been on a roll lately scoring heavily with two swing trades in MNAP (50%) and EFUT (75%) in a week… Is there more to come?

MNAP fell back (we were lucky with our profit taking advice at exactly the right moment and had a run from 24 cents to 35 cents), and we’re now waiting for drilling results. If you like speculating on a positive outcome (there is a relatively good chance that will happen) you can buy back a little, otherwise wait for the results.

The consolidation seems to be over and people are positioning themselves for positive results already, but we stress, this isn’t without risk. On the other hand, if oil is confirmed, the upside could be quite dramatic, another double is entirely possible.

EFUT continues the very solid long-term buy we always argued it was. Our profit taking advice came a couple of hours to early, while it was at $10.50, but that’s still quite a win from where we advised to buy ($6.50) a week previously. EFUT has a couple of very nice things going for it:

  • It never disappoints (at least so far), always beating expectations
  • It’s balance sheet is extremely sound
  • It hasn’t even been scratched by the world recession

InterOil is doing just fine, we’re waiting for the DST results.

FUQI, the Chinese jewellery, has been less spectacular since we adviced a position mid April ($5.20). However:

  • It continues to be ridiculously cheap. This years earnings are, (average of four analysts) is $1.44 this year and $1.83 next, giving it a p/e of 4, which is ridiculous in our view
  • It has a history of steady and impressive growth
  • China looks to be the first economy to see light at the end of the tunnel
  • The last two days, the buying in FUQI seems to have accelerated:

Although having bought at our first advice would have been 10% cheaper, it’s by no means too late to get into this one..

Tags: EFUT · FUQI · IOC · MNAP

1 response so far ↓

  • 1 Darcy Patten // Apr 30, 2009 at 1:32 am

    You go STP! If I had any money leftover from IOC investing I would be jumping into the deep end with your above suggestions 😉