Mechelany Advisors’ Investment Ideas are here to make our readers make profitable investments over different time-horizons. Our value oriented investment management style and research focuses on cheap companies with great and solid businesses to be held as core holdings in portfolios. We provide individual Investment ideas based on our multi-layered screening and valuation process combining structural, top-down macro, sectoral analysis, bottom-up stock selection and valuation analysis. Our Investment Ideas may be included in our Model Portfolio while some may not be included if they do not fit the global risk profile and asset allocation chosen at the time of selection.
Bear markets usually end with sharp Breakouts.
This is about to happen on one of our favorite stocks and one oft cheapest in the investable universe CHINA COMMUNICATION CONSTRUCTION 1800 HK.
It is juts a matter of days before the stock breaks out of its extended bear market and rises sharply toward HKD 4.50 or even 4.80
Bollinger Bands don’t lie…
They Depict a situation of extreme balance between sellers and buyers that cannot last as the three indicators: Median, lower and higher converge to one single point.
This means that a significant breakout is about to happen very soon, probably in the next few days.
Coming after a significant bear market, and a consolidation triangle, the likelihood is that the breakout will be to the upside with targets at HKD 4.11, 4.50 and 4.80
China Communication construction is an extremely cheap stock, trading at 2.5 x next years earnings, 5.6 % dividend yield and 0.25 x Book value
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