September has gone by. The expected dip didn't happen, most of the stock go up instead of go down. The focus was still on small cap, and likely remain so in October. Will be see a correction in October? Maybe, just my guess.
On the individual stock front, I bought Eratat Lifestyle based on following observation:
- Stock price has recovered and unlikely to go down again looking at the trend
- Company is coming out to engage the investor to promote the story
- It attracts more analyst interest and price could move due to increased interest
- Compared to Hongxing and China Sport, it has a better story to tell. Competing with big brand like Li Ning and Anta might be too challenging
The stock on my permanent watch list - Wilmar has seen gradual decline. I view this as a good sign. It allows those interested to get in for the long run. Wilmar is both a CPO story and consumer story. Of course, I like the later more. If I can get it at a cheap price, I am willing to wait for the outlook to improve and stock deliver in the longer term.
Sunday, 3 October 2010
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