Replies to post #16623 on China Growth Stocks

[Traderfan]

SKBID, to be honest I'm not an expert when it comes to this stock as I never really looked into it but from what I have seen the latest news is kinda fishy. People clearly think that there are other problems behind the recent delay but that remains to be seen.

Speaking about the valuation I believe the company expects something like 1.70 in EPS in 2010 so if that is true and it comes to fruition the stock is cheap now.

I think we at least go to 8.65 and test the MA100 because if you look at the chart that's what the stock always did when it went down and it always found support at the MA100. Every single time in the last 5 months.

Unfortunately I have no idea how to put up a chart here.

[ari5000]

HQS:


from what little I've looked into it -- the drop was justified... I think they just didn't get the growth going that they said they would.

I like to dabble in the world of net-net stocks... but it's a different kind of investor than the folks here who are really value/growth oriented. HQS just hasn't performed so it's probably cheap now... but needs a catalyst to bring back investors.

[ratobranco]

@MaxLuke - HQS

I would stay away. They sell cheap because they continually destroy shareholder value.

Case in point: they sell at roughly $7/share ($100M cap), and have roughly $3.50/share ($50M) in cash alone. Yet they just registered another $50M offering!!! It's nutz. They have absolutely no need for cash right now, but they keep raising cash "just in case" a need arises in the future. It's as if they are a company with an anxiety disorder. Cash OCD--never enough to quell the fears.

If you dilute like they have in the past three years, the earnings will get bigger, but the EPS won't. Not a good company, I wouldn't touch it with a ten foot pole.