HK445 VWAPNoticing a nice VWAP trend on China Fire (HK445)!  This stock, we notice, usually goes up quite a bit when a big fire (as reported at this link) happens in China.  We are all quite aware of the rapid urbanization that is happening throughout the Mainland, but the proper level of fire brigades have lots of room for improvement, especially for having fire trucks that can reach much higher floors (19/Fs or above).

And because of the lack of actual fires happening, we suspect a lot of companies may try to use fire equipment that is not up to the national standard to save costs.  That is one of the reasons, we believe, which may be causing the company orders to decline in recent years for net losses.

However, we believe the recent VWAP trend indicates the market may be recognizing some value in the company, as the net book value as per latest financials is about HKD 0.53 per share.Roblox HackBigo Live Beans HackYUGIOH DUEL LINKS HACKPokemon Duel HackRoblox HackPixel Gun 3d HackGrowtopia HackClash Royale Hackmy cafe recipes stories hackMobile Legends HackMobile Strike Hack

So even after the +17.72% rise last Friday to 0.186, the stock is trading at 35% of book.

So there you have it, our last VWAP pick of the year!

Happy New Year to all and wish you all a healthy, and prosperous 2013!

– Mr. Alpha


Comments

comments

Powered by Facebook Comments