Christmas came way early!
We said that this Singapore listed semiconductor play counter AVITECH (AVISC.SG) had the chance to return +30%+. See our blog post here. https://www.quantzombie.com/single-post/2017/01/10/AVI-TECH-is-a-Value-play
It's up 55% since.
We introduced our post when the price was 0.305. It closed at 0.475 yesterday.
We try to be different here. We liked AVITECH not only because of great valuations and a great looking technical setup. But we also ranked it high on our potential return on investment based on our estimation of market ignorance. Meaning that the broad market was not quite aware of this company and only a small bunch of smart money was quietly hopeful. It also helped that the momentum in the semiconductor space was swing in the right direction in the right time.
Here's the summary of how we scrutinize the counter in a few dimensions.
1) Fundamentals: Great cheap stock with good cash flow. Earnings don't look to shrink either.
2) Technicals: a good consolidation period after a bottoming look.
3) Market Ignorance: a true bottoming candidate must have the characteristic that the broad market and many retail financial analysts are unaware or unreasonably biased against. Bottoms occur when everyone hates it except for the insiders, tops occur when everyone loves it except the insiders.
4) Broad sector sentiment momentum: Semiconductor were starting to get in fashion.
Do check out our Facebook page for alerts for trading ideas.
By now you should be wondering why we are giving out high quality ideas for free. It's our way of giving back. However, we can't guarantee how many more ideas we will share in the future. So in the mean time, cheers, and take good care of yourselves!