actually, i wanted to talk about this too. mind exchanging thoughts on huaan?

Short term, steel sector wont recover for at least 6 months.
Even if recover it's hard to say if it'll reach the level during olympic times.

Long term,
Would you buy huaan when there's other big fishes at discount prices too?

For example, I'm thinking both short term and also long term, it's better to buy genting at 3.5 for example or carlsberg at 3.x, guiness at 4 or Reits with 10% dividends now....

There's just so many other shares that's worth much more, in long term growth potential, dividends and short term growth too, that's why i decided to bite the bullet and exit now.

But then again, i didn't buy too much huaan. so it's not too big a bullet, and i can still makan it
Disclaimer : this is not an advice to sell...
 
Huaan see red already. 0.205.....

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Added on October 29, 2008, 10:31 amall gains in the first 2 hours lost, counters seeing red already now.
So fast lost momentum.

I actually prepared for their profit to be halved, with cash generated to weather through the coming recession. The capacity expansion just come in at the wrong time but it won't burden them much. What I concern more is the impact of the environment issue (although they claim they are very environmental friendly, but the industry is well known to be notoriously pollutant. If what they claimed was true, we might see their competitors shutting down by environmental pressure, thus benefiting them). Can try to invest on this type of share, but not to be dominant in the portfolio. That's my 2 cents.

I think the capex already incurred and reflected in their 2Q financial statement, and personal cost will be limited to direct labor to the new plant (a lot of overlapping labor can be saved, if they planned it wisely). I still waiting for 3Q result to confirm whether to increase/ decrease/ maintain my holding. But judge from the research posted on their website, I guess 3Q result might be 10~20% lower than 2Q, thus maintain 'buy in weakness' policy for me. Wait for 3Q result, I long term investor.  The one-day rally almost over, think market was not convincing with Dow's 10% hike.

In economic situation like this, cashflow is more important than Profit for survival.

Long term wise, profit is very important., and has great impact on share prices.

Just my 2sen.

commodity is always king, huaan is producing coke in china, u can relate it to steel demand. Actually to thing that make Huaan profit:
1. the difference in the price of coke(the product-to-be-sold) and the coal(the material-need-to-buy) the higher the difference the higher the magin
2. the economy which affect the steel demand which affect the coke demand

Jim Roger and George Soros agree that the China is the next dragon that the world have to watch out, the economy growth of china is going to open our month soon, thus the coke demand is definitely increasing.

Actually from the profile of Huaan, it is not an ambitious company that have big big vision like Genting and KNM who always aim to be the world top player. However, as commodity is still king, the profit of investing in it is still quite attractive and promising