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By Pehon | July 10, 2007
What a spectacular day for my new recommendation (Breadtalk), but what a bad day for one of my long time favourite, Sino-Env. In fact, Sino-Env was weighing down on the STI in a day of bullish trading.
We saw a one day drop from $3.06 yesterday to the current day low of $2.74. It was enough for the board to publish the following press release.
Sino-Env’s Board Clarification
The board has reassured all investors that fundamentals are still sound. And I do agree with the board. Financial performance for the last quarter was not neccessary bad. So what may be happening here?
Nobody really can know whats actually happening. If you remember last week, Sino-Env dropped spectacularly to $2.4 for what was like 5 minutes. That has shaken investor’s confidence, and a spark was all that was needed to create a bear. The spark was probably a sudden spontanous selling by investors that we are seeing right now.
So what will I do now? Nothing. Fundamentals are extremely sound at present. There has been no change to that. The board has reassured us of that. The current valuation has created a wonderful buying opportunity for any long term investor. However, as recommended by JL on one of his comments, its best for short term traders to stay away from Sino-Env for now, till whats happening now becomes clearer. Long term investors be prepared to have a bumpy test of faith to endure for the next few days, and hopefully not weeks.
July 10th, 2007 at 7:18 pm
Hi pehon,
Been observing the erratic fluctuations for Sino-Env for a while now, and I must advise caution. Thougg the Board has come out to make a formal statement reassuring investors, it always pays to be wary as there still may be some news lurking which no one but insiders is aware of. What I would suggest is reviewing the 1H 2007 financials when they are released in Aug to see if the company’s growth and margins are as promised by Management. That will be a good test of their integrity and promises.
Good luck !
July 10th, 2007 at 8:29 pm
yeah thanks dude. goodpoint
trade with caution everyone!