Tuesday, January 24, 2006
Sunwin (SUWN) update
I looked at Sunwin's 10-K and Q2 results and I looked at their auditor and I made fun of their press release.
My conclusion:
The stock has doubled since I looked at it on Jan 1, 2006. There are a lot of other Chinese stocks that I'd say were selling cheaper than Sunwin. I guess Sunwin got their $20,000 worth of visibility with Alan Stone & Co.
UPDATE Jan 30, 2006: Ok, so now the stock has more than tripled.
My conclusion:
Due to issues with the auditors here, I would need more margin of safety for this company. Right now it's selling for what I'd consider to be a P/E of about 15. The company has been growing and they're putting a lot of investment into the business. But things can and do go wrong. I consider this to be only semi-audited, at best.Sunwin issued this press release which says nothing. I haven't seen anything to change my mind about Sunwin as an investment. It was selling for a P/E of about 15 and any increase in price would be based on assumptions about the future. And if anything, the deal with Alan Stone & Co made me think even less of them.
The stock has doubled since I looked at it on Jan 1, 2006. There are a lot of other Chinese stocks that I'd say were selling cheaper than Sunwin. I guess Sunwin got their $20,000 worth of visibility with Alan Stone & Co.
UPDATE Jan 30, 2006: Ok, so now the stock has more than tripled.
// posted by Bruce @ 7:38 PM 
Comments:
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Bruce, I like your stuff. You might want to put up an email address for readers to talk to you. Gmail, hotmail, whatever. Sorry if you already have one on your blog but I couldn't find it.
# posted by 
: 9:48 PM, January 24, 2006
: 9:48 PM, January 24, 2006
Yeah, I bailed from SUWN after that stupid PR earlier, and when I saw that big seller show up at 0.25 once again. But I guess he quit selling, lol.
Any comments on CXTI? re that 35M contract?
Win some, lose some.
Best Regards,
Joel.
Any comments on CXTI? re that 35M contract?
Win some, lose some.
Best Regards,
Joel.
# posted by : 8:40 AM, January 25, 2006
: 8:40 AM, January 25, 2006
I didn't like SUWN at 23 cents, I see nothing new, so that means I really don't like SUWN at 52 cents. So I don't consider SUWN a loss because it's not something I missed, just goofy behavior that I have no way to predict.
As far as CXTI goes, it's amazing how silly the market can be. It's not the least bit surprising to see them win a big contract. If they need to raise money to service the contract, it wouldn't surprise me to see the market push the price back down again. Maybe not to 85 cents again, but who knows? I think it's worth being prepared for such a thing and jumping in big-time if it happens.
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As far as CXTI goes, it's amazing how silly the market can be. It's not the least bit surprising to see them win a big contract. If they need to raise money to service the contract, it wouldn't surprise me to see the market push the price back down again. Maybe not to 85 cents again, but who knows? I think it's worth being prepared for such a thing and jumping in big-time if it happens.
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