Is really racing ahead once more..
We advised to buy Fuqi International (FUQI) at $5.20 just over a month ago. In this short time span, it has doubled. The reasons are not hard to find.
- It was very cheap, and in fact, it still is cheap, which has a lot to do with
- It produced stellar results last week.
Still, we have two reasons for saying goodbye, at least for now.
- Technically, it’s getting towards levels where it can be said that things are heating up just a little too much
- We don’t trust the general markets. China in particular has rallied very strongly this year already.
We do not discount the possibility that we’re too early with this, but the downside to that is that we have locked in a gain of 100% in just over a month. I think most people who followed our initial buy advise would be able to live with that..
You could just hold on to it a little more to see whether the market will squeeze out another gain on Fuqi, which is entirely possible, or just hold on to it for the long-term. The underlying growth in the company seems more than intact, so we’re quite sure that this will pay off. But for the traders amongst you, we think time is approaching to say goodbye for now.