Specific Question: What do you guys here think of China Architectural Engineering CAEI?

I've been watching this company for a couple of weeks now and still a little hesitant.
What do you guys think? Worth a token short term position or regular long term investment or to be skipped all together?
Thanks in advance.

Best Answer

TBone answered a question in Energy and Industrials.
276 points

TBone answered 3 months ago …

Fundamentals look solid -- good profit margins and returns on equity. The stock seems to have found support at $7 per share, which means your likely downside is only 12.5%. There was some strong resistance at $10 per share which means your potential, maximum upside (in the short term) is 25% (that's a risk:reward ration of 1:2 -- not one I'm very comfortable with). I'm even less comfortable with both the technical and fundamental factors due to the short lifespan this company has had as a publicly traded company -- who knows what it might look like in a year.

I think there's easier fish to fry in China.

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