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Showing posts from November, 2011

Ho Bee earnings potential

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I have added on shares of Noble Group & Ho Bee to my portfolio. Acquired Noble Group when share price was battered down heavily due to the resignation of CEO Ricardo Leiman and the company first quarterly loss in 14 years. Buy when there is fear and sell when there is greed! Altough we are facing the eurozone crisis and China risk of default in loans, I am not sure how markets will react to Noble Group in the short-mid term. But I am prepared to average down when Noble Group is priced near to $1 per share. After all, commodities is cyclical and there will be a time the cycle moves upwards. We can review past historic movement from the available commodity indices. On the other hand, I purchased shares of Ho Bee due to 3 key reasons: 1. Attractive Valuation P/E is 2.87x using today's last done price of 1.25. P/B is 0.56x @ NAV 2.22 per share. NAV was increasing in the past 5 years but Mr. Market is not rewarding the business. Comparing peers and past historic P/E plus the fact t