To Buy or Not to Buy?

As US DOW closed down 120 points on the last day of 2009, the rest of the world could follow the downward pressure on the first hour of trading on Monday morning. That could posts a good buying opportunity for the coming CNY hype.

Chasing stock to sell on hype is not a good practice. That's why I'm so undecided whether to buy or not to buy. Since there will be a CNY hype on Chinese stocks, XinQuan comes to my mind. I like this stock as the earnings looks very good. Although it is still unproven as it is just IPOed in Malaysia, it is still a good buy (hopefully not good bye) compared to other Chinese stocks.

The sudden buying interest shown in the last trading day of 2009 can be a good sign as people may finally discover its value:

The coming annoucement of dividend may send this stock to a pleasing level and I am so tempted to buy more. As the dillemma goes on, it is better to talk more on the problem of chasing-the-hype mentality.

My verdict is ... it depends on whether it will drop back to 1.18 or 1.19 level on Monday morning. I am quite sure it will have a good run before CNY. I will post if I make any changes to my holding of this stock. Stay tuned!