Monday, February 11, 2008

Ouhua Energy

Summary
This company is disappointing. Brought at 72c now worth 26c. Down 64%!!! A lesson to learn here.
1) Not to be greedy
2) Analyse the company first
3) Understand the company competitive edge and profitibility first

One reason I believe that cost the value to drop is the poor margin that it has. Especially after PRC announcement of limiting the price hike of LPG squeezing of LPG companies.

Strategic Analyse
This company has poor margin. seriously has to do something about it. Limited by technology and goverment policy.

Fundamental Analyse
Earnings _ Y06
EPS ______ 91.39rmb
PE _______ 1.4 on 11 Feb 08

Ratios ___________ Y06
Operating Profit _ 3.73%
Net Earnings _____ 3.06%

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