China High Speed Transmission 0658

[winston]

Last Friday's Short Selling 1.8m shares ( out of 18m shares ) - 10%
Monday's Short Selling at 6.6m shares ( out of 30.1m shares ) - 22%

[winston]

Vested

As the short-selling is very high on this stock, it's time to review the fundamentals of the company to see whether I have missed anything.

The short-sellers normally have a lot of good information so we should respect them. Having said that, they could have shorted at around HK$18 and may be covering now.

1) The Wind Industry is expected to grow at 20% to 30% over the next two years, so it should be good for the company

2) Onshore Wind Farms of 1.5MW and 2.5MW should still be using gear-box

3) Offshore would probably switch to "Direct-Drive" but "Direct Drive" is more expensive and also uses rare earth

4) Margins may be affected by increase in Salary, Raw material, Competition etc.

5) PE 14; As long as it's growing EPS at 15%, PEG is 1

Did I miss something ? if you are a Short-Seller, would you dare to short a stock that has a PEG of only 1 ?

What could be a catalyst that would squeeze some of these shorts ? Asset Injection ? New Products ? Buy-Backs ( their placement was at 17.38 ) ?

[profittaker]

There will be a point where Market realise this ticker is oversold. I am watching and waiting, so far using MACD, it shows similar chart as capmalls Asia. That is, everytime it fails to make bullish cross it continue to fall further. Not considering long unless bullish cross is successful.

[peter]

hi profitaker,
kindy do give a shout when you see a bullish cross, watching this ticker too, thanks

[winston]

Tuesday Morning Short-Selling at 3.5m shares ( out of 11m shares )

[winston]

Last Friday's Short Selling 1.8m shares ( out of 18m shares ) - 10%
Monday's Short Selling at 6.6m shares ( out of 30.1m shares ) - 22%
Tuesday Short Selling at 5.7m shares ( out of ? shares )

[winston]

Wednesday's Morning Short-Selling at 1.07m shares ( out of 4.1m shares )

[winston]

Last Friday's Short Selling 1.8m shares ( out of 18m shares ) - 10%
Monday's Short Selling at 6.6m shares ( out of 30.1m shares ) - 22%
Tuesday Short Selling at 5.7m shares ( out of ? shares )
Wednesday's Short Selling at 3.05m shares ( out of 10m shares ) - 30%

When are they going to squeeze those shorts ?

[winston]

Thursday's Morning Short-Selling at 340,000 ( out of 9.7m Shares )

I'm surprized with the low amount of short-selling as it was very weak. Must be Window Dressing then ie. funds are selling low performers before year end but ain't it a bit late now ?

[winston]

Vested

Friday Morning Short-Selling at 738,000 shares ( out of 3.3m shares )