red hot stock

Definitely would have to agree with these sentiments from the current AFR Smart Investor
mag....


"Cover Story
Red hot stocks to make your portfolio sizzle
You could be excused for thinking that picking winners in a booming sharemarket isn't all that hard. But think again.
By Alan Jury
18 January 2006

That's the beauty of the sharemarket. There are 1631 listed companies to choose from, less than a third of which receive any sort of meaningful coverage from a stockbroker.

But these smaller stocks are where you're most likely to get triple-digit returns. You wouldn't want to have a portfolio comprised entirely of stocks such as this, however, every portfolio should have a designated proportion for future growth stocks. They can be exploration companies, technology companies or small industrial companies with a developing product or brand or revenue stream.

Companies that qualify for "hot stock" categorisation tend to be in undiscovered territory. It is imperative that you try to read a copy of the company's recent financial statements to get a feel for its financial condition, as well as to understand what management is saying publicly about prospects. Pay particular attention to the company's cash position – how long can it afford to keep going without raising more equity or debt? "

Ok interesting that SSI after such block buster returns is still a relatively unknown

Time to Roll out some behavioural research

people tend to Buy the familiar and the what has given a good experience

SSI is unknown because it is not widely held
The most likely buyer of a share is one who is already holding

Future returns correlate to the size of the share holder base and more importantly
If it is expanding....

In a stock with short sale constraints ( even ones that don't ) A natural bias exists

While non shareholders can buy ( even though they are less likely at first )
Non shareholders can NOT sell..

So it takes time We have waves of action and consolidation

future news and developments act on the firming technical position


In the article in the Mag SSI makes the list as one of the Red hot stocks to make your portfolio sizzle..

Yes the board is impressive
Yes SSI has secured a large first mover advantage in Shanghai
Securing the majority of issued licenses

Yes gaming in China as enormous growth penitential

Yes SSI has an 18 year history of dealing with China
and over that 18 years has demonstrated A financial robustness

( yes there are balance sheets,, and cash flow statements and P & L...But when Do they tell the whole story ?? HIH anyone ?? .......Good indications are longevity ( 18yrs ) Management stability,, Capital and debt movements ( never had to raise much debt,, never had to issue new shares for just working capital,, Hardly issued new shares at all )

Ok Alan Jury attaches the usual... SSI is a high risk investment...
But what isn't ?? other wise everyone would have bought already and We would not have
at last price.. A potential red Hot Stock ?

Take the management

LI
mathieson
Gillhooly

Financial stability ( seen through capital and debt movements of that 18 yrs )

How the deal has been structured benefiting all shareholders

And Partners like China Telecom

+ A small shareholder base
showing all the signs of tightening their grip.. On a good thing

+ The placements at $3.50
and the purchase of eternal profit shares at $3.85

Are signs that that shareholder base is Growing and likely to grow further

We have everything in Place to have a Red Hot Stock


My Views and Opinions based on My understanding
At the moment..



motorway