GU: Update
Judging by my comments, it seems a lot of people are involved [[GU]]. My thoughts on the stock: Today’s action in the name has everything to do with technicals, if you were in this name for a quick profit, the trade is over. Nothing is fundamentally wrong with the company, it just broke down. It is a recent IPO, and thinly traded, so expect wild movements.
Why I like the company: This year the company is expected to grow 80%, the next five years the company is expected to grow 50% (per annum). The stock only trades at 24 times earnings, very cheap. The company is engage in the production and distribution of bio-diesel, and has the Chinese market on lock.
This remains one of my favorite picks, and I will be adding on future weakness.
Chris has a good article on the company: The next Chinese IPO
Ragin,
fundamentals might have changed today, technicals just reflecting that. check out the news story on forbes on clean fuel in china.
this is a thinly traded stock so if the company does some pr over the weekend or monday, it could very well see some upside. right now is a good time to buy ? I will rather wait for monday, this stock broke its lod after a possible consolidation, not good inthe short run atleast, imo.
thanks for blogging tho.
I am not adding to my position at the moment. The stock could see $10 before $20
Yea I saw the news article and took my loss. Everything I touch seems to turn into a flaming bag of shit lately. 2-3 days ago I liked the stock and it’s prospects. Right now I wouldn’t touch it above $10.
I need to take a step away and refocus.
Correct: the “trade” is over. The investment is still a possibility – depends on action next week and beyond.
$10 is a strong possibility short term; $20 is a solid risk/reward target 12 months out.