Bonzo for Bonso?
Hello Coloradoguy.
First off love a company based out of tortola! No taxes I imagine and if we have to go there for a
" corporate " meeting- so be it- nice island.
There is ONE warning sign with this company which is it's 1 month 29% rise was accompanied by minus 46% volume!
The good news it's above it's 50 & 200 day MACD ST and LT look Bullish, money flow direction is up. An buy point for me would be $4.85 - $5.00. $5.40 is clear resistance having stopped there last week, break through that and it's a nice picture.
From The co:
"Our sensor based product sales remain strong. Yet, we are facing increasing pressure from rising oil prices, raw material prices and rapid increase in labor costs. This has squeezed our gross profit margin from 19.7% to 18.9% in the second quarter when compared to the same period last year. Fortunately, we identified these factors early and took appropriate action to offset the impact on second quarter earnings. We still maintain a strong cash position and our cash position at the end of the quarter is $10.7 million, or approximately $1.92 per share."
Well the oil bit seems like a NEG too in that oil prices have come down so much perhaps they actually
" hedged " at prices above where they are now!
About Bonso Electronics
Bonso Electronics designs, develops, manufactures, assembles and markets a comprehensive line of telecommunications products, electronic scales and weighing instruments and health care products. Bonso products are manufactured in the People's Republic of China for customers primarily located in North America and Europe.
That last bit is interesting all the China plays I have been playing are catering TO China this is an exporter
benefiting from our weak dollar and low labor costs.
How could the stonedinvestor not like a company that makes scales and weighing equipment?
To be watched I think....BNSO.
