Ying
Li International - This "speculative" counter is an extremely
undervalued yet profitable company, which price has been going downtrend (book
value of 1.96 vs current price of 0.131). However, its Debt to asset ratio has
been increasing and it is a bad sign. Currently, it is oversold with a RSI of 24-28.
As compared to Mermaid Maritime, both have similar ratios of increasing Debt to asset ratio along with a nose diving net income. However, Mermaid Maritime is making great losses while its price movement had went up in the last few months before giving way (rising from the bottom 0.09 to 0.20 before sliding back down to 0.177). Its estimated book value is 0.24.
This
typical example shows how irrational price movement can be, where a negative
net income counter (Mermaid Maritime) goes uptrend while a profitable company (Ying
Li International) gets oversold from its new highs. This happened in the same
period of 1 year.
Ying
Li international may be the one to watch for any speculators, with a support
level of around 0.125.
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