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Singapore “Flyer” of the Week: Hu An Cable Holdings

hu an logoHu An Cable Holdings Limited (SGX: KI3), one of the top-ten wire and cable manufacturers in China, surged 20% so far this week. It is now trading at $0.101 on a historical PE of 6.8.

It was only two weeks ago that Hu An Cable was featured in our “Falling Knife” of the Week. Since then, there has not been any announcement by the company to warrant the huge jump in share price. Around S$2m has been added to the market value of the company, even though nothing material has changed.

Last week, Albedo Limited (SGX: 5IB) suffered a similar fate. It was our “Falling Knife” of the having previously gained the accolade for our “Singapore Flyer” of the Week at the end of August.

Traders sometimes bid up or sell down a share based on price, without regard to fundamentals. Benjamin Graham famously quipped that investment is most prudent when it is most business-like.

We should always look at the underlying business and base our buy decisions on the fundamentals and not just on the share price.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.