HUAANN is a blue chip? News to me.

If it is how come the price so cheap?

Share price has nothing to do with whether or not a counter is blue chip. Share price can be manipulated to be very high or low depending on the par value as well as the number of shares.

I'm just curious how some have said HUAANN is a blue chip and wondered how they came to that conclusion.

The name of blue chip normally given to those reputable, has long history of good earning, big cap and stable company.

Huaan is a relative new in the market, although there is no specific rule to say which is blue chips or not, for Huaan, most analysts won't classifiy it is blue chip.

I thought blue chips meant those CI component stocks?

There is no specific way to classify or rule on it, just a market jargon to those as I mentioned.

The reason why people taught this way because normally index will include those big cap and well perform company so that index looks good and represent well of the country bourse. You want your index becomes higher and higher, right?

You definitely don't want Transmile as one of the component, right? it drags down the index while make the index looks not so good. That's why they always discard those not well perform one, and including newly good one from time to time.

If non-index linked can't be said blue chip then we have to discard Resorts as blue chip already, while the like of Transmile was a blue chip.

No offence.

Probably...Because it was one one period one of the hottest stock that everyone is talking about therefore got famous...Famous = Blue Chip??? XD LMAO!!! or CI drop, HUUAN drop badly and CI up HUAAN shoot through the roof?XD

hahaha Huaan the BLUE CHIP go to Holland already

Did they get themselves listed there as well?

if not mistaken, HUAN is under Antah rite?
not a good management team..

Panic selling only, nothing to worry... the whole KLSE is dropping.

People worry steel price drop, but they forget price of oil also drop. When oil drop, cost of doing business for HUAAN is lower, should be able to offset the slow demand of its product if steel production is cut. This is ramadan month, surely construction will slow down, demand for steel will slow abit... there is a big construction going on in the Middle east.

HUAAN take over the listing of Antah, backdoor listing. HUAAN has a management team from China and they are located in China. This is a very important company in China. When they are listed here, the Mayor of the town where HUAAN is located also come to Malaysia. Thats why it is known as a Blue Chip counter.

This post has been edited by tsd: Sep 12 2008, 09:53 AM

The China people surely feel so bad looking at the price of counter rite? I also getting more interested with this counter but at the moment no more bullet liao . However i will put this counter under my radar. But really one question without answer is why they listed here instead of Hong Kong. seems nobody can answer that

The next 2-3 Q result will hold the key and reveal the real effect of the slowdown. Share price will react accordingly.

For big scale manufacturing company.
Demand goes slower generally will hurt manufacutring underlying profit quite significantly because there are certain fixed cost that are difficult to cut down which might not be able 100% offset by lower cost of material, ie capacity utilisation is an important factor for manufacturing company as there are certain fixed cost like depreciation, production overhead etc which cannot be easily being cut down to match the pace of demand slowdown.

There are probably hundreds of China based company listed in Hong Kong, if they are listed there, they might not even get noticed. They probably thought if they are here in KLSE, they can be "big brother" here... very few China based company are listed here they are easily noticed by investors. KLSE was #1 stock exchange in this region, they probably overlooked our current political problems. Foreigners dare not come in as long as this thing is not settled. I am very confident that this political problem will solve very soon.


Yep, there are lots of fixed overhead have to pay. I think they should able to cover as they have no debts, lots of cash which can bring income. Its very unlikely the demand will slow until they cant sell anything. I dont think steel industry is in such a bad condition.

This post has been edited by tsd: Sep 12 2008, 12:01 PM

This doesn't sound a right or good reason to list either.
They should already knew, in Malaysia, for the last few 5-7 years, IPO generally won't chalk up a good premium already.

I think you had never been in before in manufacturing sector. A 30% or more sales decline already can have significant impact on the a manufacturing company already.

Yes, goodside is the company has no debt, so don't need to bare any interest rate charges. As long as cashflow is healthy, company still in good shape.

Share price is about profitability of the company. Company share price will match the pace of increase or decrease of the company profitability. Company can still earn hundred of millions, but stock market won't like if the company profit is declining, that's why you see equities around the world are declining due to high potential slowdown in the world economy.
That's why steel stocks are having low PE around 3-5 across only, because market view previous good profit won't be repeating.

The 3rd Q and 4th Q result is around Nov and Feb respectivetly. These will roughly reveal the actual movement of the profit whether it is in the declining stage or otherwise.
Practically, the steel industry is slowing down now, might see a flat profit ahead, anyhow, it is wise to wait till the result announced before attempt buying in. I will wait for that before buying in more, since i'm holding some at 0.50+, no hurry to act at this moment. Personally, i think current price is cheap as it Net asset value per share is worth about 0.64sen, but again anything can happen.

I am monitoring this counter closely, few mins ago... 1800 seller queue at 0.405, suddenly 1500 is done, thats a RM60K transaction. Surely someone with big money are willing to do that in this kind of bearish market. Then I also notice, got small seller, selling 20 or 30 to 0.40 sen. There are some big buyer in this counter... they dont spend RM60K to buy 0.405 to make loss later.

This post has been edited by tsd: Sep 12 2008, 03:06 PM

A RM60K in the stock market is a relative small sum actually. Just a norm market transaction.
No offence.

Nobody can assure they will make money or not including big players.

Big or small never mind one. Big players are not guaranteed to make money as well, so does small retailers, even their investment amount is small doesn't mean their decision is not as good as that big players.

RM60K is consider big for most of us, how many of us are willing to put RM60K into a counter that is battered so badly in the recent days and in such a bearish market. Unless someone wants to play contra, but who will play contra in such a bearish market. Surely this is done by a bigger player with some intentions to make money in the near future.



This post has been edited by tsd: Sep 12 2008, 05:57 PM

never never underestimate small players too...RM60K is nothing la...60 millions then u can say it loud..no hard feeling, k?