China Ouhua Winery Holdings Bhd

Being a day trader when feeling like it to do, I am very impressed by the Chinese-based initial public offerings (IPO) Ouhua Winery and thus my itchy fingures pressed upon it, and the 1st day did not performed great but the following days were just as worst. Not likely to hold on to the said IPO and thinking of the slim chance it could go I just disposed it all off the day before yesterday....... hmmnnnn.....cry ...cry...and the minute I disposed it off it shot up to the present price and I have to admit for a very poor exist point booking for a very minimal gain. Re-entering it at another price did not match... otherwise should be laughing to the bank cos I took up position sizing on it...... damn ....damn.....

Today look like not a good day since it is Friday for most day traders to unlock its profit....... and the market itself will definately tells....


From The Edge Financial Daily :::China Ouhua Winery Holdings Bhd saw a surge in buying interest yesterday which pushed its share price to an intra-day high of 78.5 sen, 12 sen or nearly 18% over the previous day’s closing of 66.5 sen.

China Ouhua, which made its debut on Bursa Malaysia’s Main Market just last week, closed at 74.5 sen, up eight sen or 12% yesterday. Trading volume in the stock soared to 33.7 million shares, making it the sixth most actively traded stock on the local bourse. So far, its share price has gained 14.5 sen or 24% over its offer price of 60 sen.

China Ouhua is the first and only China-based winery listed on Bursa Malaysia.

Judging by the share price movement, it seems investors are more convinced by the growth potential of the winery business in China than the Chinese-based sports shoe manufacturers.

Nonetheless, analysts said China Ouhua’s impressive share price performance does not necessarily indicate that investors are now more receptive to Chinese-based initial public offerings (IPO) or Chinese-based stocks in general.

Some analysts also attributed the share price gains to interest from day traders.

They concurred that valuations of Chinese companies listed on Bursa Malaysia were very attractive at low single-digit historical price-earnings ratio, but also said that alone was not enough to attract local interest since investors could now invest directly in bigger Chinese stocks that are listed in Hong Kong.

Still, some analysts see a potentially interesting story in China Ouhua, as it is the only stock here that allows investors to invest directly into a winery and tap on China’s growing consumerism.

This is the second foreign IPO advised by OSK Investment Bank since last year. The first was Xidelang Holdings Ltd.