Analyze this Mystery Stock

[Qs Laptop]

Take a look at the numbers for this "mystery" stock. This stock is on the NYSE.

It has a PE ratio of 1.73.
It's beta is 0.33.
Market cap is $2.82B
EPS of 21.56
Avg. volume is 1.25M
52 Week Range 32.20 - 77.18
Currently trading at 37.50
It does not pay a dividend.
It has zero debt.
This is a China-based company.

I can't think of a reason not to buy this stock. I already have a small position in one of my IRA's at $56.75. Would you buy this stock?

 

[NgineER]

Probably not - been burned by Chinese stock before. Looks like it is on its way down based on the 52 week range.

 

[Go-NoGo]

From what you have posted it looks like the stock in question is Daqo New energy corp, NYSE: DQ

https://finviz.com/quote.ashx?t=DQ&ty=c&p=d&b=1
It has been downgraded by Goldman and by Daiwa recently (not that it means much - but still)

And the downward trend does not look good.

 

[MichaelB]

Will it be delisted for not complying with SEC audit requirements?

 

[njhowie]

Best to stay away from Chinese stocks. So much accounting fraud goes on. Very doubtful the PE is really below 2.

If/when things blow up, you're not going to have anyone who has your back. SEC won't do anything. You won't even have ambulance chasing class action attorneys going to bat for you.

Even more so than with other stocks in general - be open to the possibility that you could lose everything. If you're ok with that, to an even greater degree, then go for it. Nothing risked, nothing gained.

 

[38Chevy454]

I agree, do not trust any Chinese companies. They do not have the reporting and auditing requirements (my personal feeling is they lie, but my opinion) that US or European countries do. My personal rule: I will not invest in any specific individual stock Chinese company. So my answer to OP's question is buyer beware.