Cacola Furniture

[millionairemind]

SINGAPORE, 11 August 2008 – Cacola Furniture International Limited, an integrated lifestyle furniture designer and manufacturer in the PRC, posted a 42% leap in net profit to RMB85.5 million, or 24.8 RMB cents per share, on a 35% growth in revenue to RMB368.5 million for the six months ended 30 June 2008 (“1H2008”). Strong panel furniture and sofa sales led the growth, accounting for an aggregate 84% of overall top-line increase.
For the second quarter ended 30 June 2008, the Group achieved revenue of RMB180.0 million, representing an increase of 32% from the previous corresponding period. Net profit was 20% higher at RMB40.6 million.
http://info.sgx.com/webcoranncatth.nsf/ ... penelement

[bertyeo]

my old lover tortoise..

[Anchovies]

I like the prospect of this company! Vested, but in deep red lol

Going to average down!

[millionairemind]

I am against averaging down but we each have our strategies to cope with market declines.

Good luck Anchovies....

Welcome to Huatopedia and I hope you have a huat year, every year

[Anchovies]

Thanks, i felt warm here haa.

Do you mind sharing with me why you are against averaging down? or is it due to this counter only?

Actually this is considered the first stock that i believe would appreciate in price in the future. However, due to my limited experience in fundamental analysis and less than a yr of stock market experience, i often feel skeptical about myself. Especially when the price just goes lower and lower, i cant help but feel lousy!

[millionairemind]

Hello Anchovies,

Glad that you feel warm and fuzzy here

It is a natural human tendency to want to feel that we are right. Everytime we enter a position, our hope springs eternal that we will make money from this stock, or for that matter any stocks in which we have long positions.

When the stock drops 5% from our purchase price, we hope that it will come back up. This is the time that we should fear that the 5% drop will turn into 10%, 10% to 20% and 20% to 30% and cause our returns to be decimated.

Note that this thread was started by me cos' I used to have money vested in this stock and have made money from it. Now I am not in it anymore.

Unless some one comes and buy this stock in bulk to drive the prices higher, the tendency for a illiquid stock in a bear market is just to drift down on its own weight. Y? Cos' the person who bot at 35 got tired of waiting and wanted out at 33. And the person who got at 33 got tired of waiting and wanted out at 31 and it just goes on.

Of course if the mkt trend higher in the next few weeks, this stock might move higher with it. But we must always address - what if this is a protracted bear mkt?

Our SGX is littered with stocks with a PE of 2-3 or a stock price that is much lower than the cash value...C&G is one such example. PE of 2.1 and a cash position of 27cts (cash balance+trade rec/shares outstanding) BUT its stock price is only 14.5cts....

Again this is not a buy/sell recommendation. Just some random tots I am throwing out.

Be careful out there and welcome again

Cheers,
mm

[bertyeo]

make full use of your $$ than to wait long long in this tortoise...

[kennynah]

how to make full use of your $$ than to wait long long in this tortoise?

[Anchovies]

Hello!

Yes you are right. My humble strategy is long term holding and averaging down. i myself is unable to time the market thus i am not able to apply the cut loss technique like you all.

Then again, it is worrying not because of the drop in price, it is rather the skeptism of my own analysis

[kennynah]

take care anchovies.. even if wrong...dont doubt your own analysis...so that when u get it right...u r confident... cut loss though may be necessary sometimes... bcos, evidently, some stock prices dont revert back to original levels even after many many years... so, capital stuck there go rusty...sometimes, some stocks never go back to those high prices ever again... bcos not all companies can survive that very long in the mkt...some fold, some get bot over for 1 cent, some scandalous and delist, some decide to sell satay when they originally sold aircons..., many things can change over time...

hence, take care anchovies....oh man...i almost wanted to repeat the same post....

anyways...long and short... some folks have given very sound opinions already....so, u call the shot in the end... good luck...huat huat ok...