Bullish Engulfing at the moment with resistance at 63.5 - 64
Sinotel Technologies rated buy
Tags: Sinotel Technologies | Westcomb Financial Group
Written by The Edge
Monday, 26 October 2009 12:40
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Westcomb Securities in an Oct 23 research report says: "The application for the American Depository Receipt (ADR) program has been approved by US Securities and Exchange Commission (“SEC”) and effected on 14 Sep 2009. Although the exact timeline can not be ascertained, the official date of trading should be just around the corner, probably in just 1-2 weeks time.
"Its third quarter report card is expected to be consistent as second quarter, given the consistency in securing new order books over the past few quarters. However, on year-on-year basis, we expect to see at least 30% increase in sales and 20% increase in revenue. The gross profit margin in 3QFY09 should hover at 39-40% and operating expenses are expected to be consistent with previous quarter. We feel Sinotel should be trading at 10x PER on the heels of the potential robust growth and favorable macro outlook in China, particularly for the telecommunication industry. As such, we derive a target price of 92 cents.MAINTAIN BUY."
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