COSCO's order books is healthy, with a strong balance sheet and profit growth in the near future.
Basically, it is a growth stock. The price upside potential is strong. Currently it is trading at 88-89c.
Wed's announcement of cancellation of orders was in fact a good news, because the impact to its profit is minimal. The market had anticipated worst than reported, therefore with the announcement, the stock rebounded strongly from Wed's low of 70c.
Cosco price broke the $1 resistance price last week. It has found support at $1.05 level. The stock market does not seemed to believe that a recession is not round the corner. Therefore, i see that there is much potential that the stock price of Cosco will hit $1.20 by year end.
Sentiment in Wall St. was not too good, local market usually follow closely to the action of the US stock market. With this in mind, the trend of most stock should be downward.
Having said that, expect a volatile market especially for Cosco stock price. Target to close $1.04.
Many are back from holidays.Investors are dumping away their COSCO holdings despite the overnight gain in Wall St. This is because the Co issued a profit warning last Tue. The accounts will reflect a bad debt provision, though no details were given.
Near term, there would be more price weakness. But, in my view, the COSCO is strong enough to ride through the storm. Hence, it's worth hanging on to their stocks.
Panic selling is over after profit warning issued last Tue. The stock was greatly helped by the market exuberance yesterday to post a small gain in price yesterday.
It would be interesting how the provision of bad debt would impact the bottom line. In my opinion, the full year profit would still be substantial.
In near term, i believe the stock would be trading 90c~$1.00. Buy on weakness.
Cheers.
This message was edited by Goondoo on 06-Jan-2009 @ 3:05 PM
Local stock market is weak these two days. Cosco price has weakened considerably from yesterday high of $1.05. Time to slowly accumulate. Now trading at 94.5c.
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05-Dec 2008 Friday
4:23 PM (5821 days ago)
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