I had sent out this email to my subscribers on 2 Oct 12:
Today (2 Oct 12) I had bought a stock call Rexlot at HKD0.65. This stock is listed in Hong Kong exchange.
REXLot Holdings Limited is an investment holding company. The Company is engaged in lottery system and games development business, distribution and marketing of lottery products in China.
It operates in two segments: Lottery business and Financial services.
The lottery business consists of development and production of lottery machines, related operating software system and networks for lottery industry, the distribution and marketing of lottery products and development of mobile value added services for lottery business in the People’s Republic of China.
Its financial services segment consists of broking, securities margin financing, corporate finance and asset management, as well as money lending. (Information from Google Finance)
Website of the company: http://www.rexlot.com.hk/
We like cheap stocks that pay good dividend. Currently Rexlot pays 2.5% dividend. This means that the company is paying me some returns while waiting for the share price to go up. Dividend yield is expected to be raised to 5%.
Good stocks are seldom cheap. Because good stocks will usually gather the attention of investment community. Good stocks are cheap only for 2 reasons: 1. They have a temporary problem. 2. They are too small to be under the radar of investment community.
In my opinion Rexlot has not been discovered yet. Rexlot has all the characteristic of a good stock: Rising revenue, rising earnings, generate healthy free cash flow, and low debt level. Dividend payout has been rising every year.
Recently a respectable US fund manager has been buying the stock. One Asian fund manager has allocated Rexlot as the top holding in their global fund. Click here to view broker’s report on Rexlot.
Our calculation shows that the fair value of Rexlot is HKD1.00. This gives us 54% potential upside from our entry price.
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BL, CEO of Tactical Trading Academy – For Your Profits, Your Success Is Our Success!