GemsTV Holdings Limited (“GemsTV”) specializes in manufacturing genuine colored gemstone jewelry in exclusive handcrafted designs which are sold directly to customers through a "reverse auction'' system via television home shopping and the Internet. GemsTV eliminates the need for multiple intermediaries by vertically integrating the traditional gemstone and jewelry supply chain.
IPO price : $1.08
No. of Shares: 1,030,468 m
NAV: SGD $0.228
Current Price: SGD $0.275
Will weak consumer spending in US affect the sales revenue of GemsTV? The thing that I like about GemsTV is this company has a debt free balance sheet and strong net cash.
Technical analysis
Let's have a look on high volume when the price surged up indicated by a white candle from the chart above. On 5th Dec 2007, the price went up from $0.44 to $0.55 with such a high volume of 87.7 m. Later on, the price consolidated for more than a month to $0.25 with a low volume. And then on 24th Jan 2008, we can see quite good volume (7.13 m) noted. Is it a good sign? Is it a good time for you to enter?
Let's see on the trend line. It's obviously a downtrend line. We need to break this line before the stock can reverse its direction. Looking at the chart, it seems that we need to break at $0.310 with a high volume.
RSI and stochastic indicators are showing sign of reversal within the oversold region. :)
RECOMMENDATION
If you are a value investor, I believe now is a good time for you to accumulate the stock. The price is very cheap ($0.275) considering the company has NAV $0.228 and strong net cash.
If you are a trader, we need to see the stock break at $0.310 with a high volume. Once this point broken, we can set a target price at $0.415. WOw more than 50% upside from the current price.
Steady Bull recommends to BUY this stock at $0.275 with a target price $0.415 as downside risk is limited to NAV at $0.228.
Huat arh!!!!!!!!!!!!!! HAPPY CNY 2008
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