Tuesday, April 29, 2008

Apr-29 New Pick [ZNH] with comments on oil and airliners

I would like to start my coverage on ZNH and put this stock into my pick list with price $32.25 for reasons below:
  • Different from world airliners, Chinese ones can benefit from the exchange rate and controlled oil price in China.
  • The oil price looks like will have a correction in the near future and lifts the whole airline sector.
  • There will be a huge explosion on routes to China brought by Olympics.
  • China local demand is quite high and is expected to continue.
  • Low PE; high growth; oversold.
Stop loss is quite simple, recent low on around 29 with -10% stop limit, or the USD spikes big against RMB in next 2 months.

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