Foreland - an expensive investment

Though Foreland released a full year revenue +117% and net profit +210% but its dividend rate was only 1.5 RMB cents versus 2.0 RMB cents in 2010.

And in today’s session, its share price ended the day -13.5% or -$0.017 at $0.109.

I bought into Foreland 35 lots last week; and my paper loss is now at $514!

Foreland is actually a good company to invest in so l would probably average down; when its price has stabilized.

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Foreland Fabrictech FY11 Net Profit Soars 210% To RMB140.6m From RMB45.4m

-       Revenue surged 117% year-on-year to RMB756.5 million in FY11, primarily due to improvement in average selling price and increase in sales of higher grade products with better profit margin

-       Average selling price of fabrics rose to RMB13.61 per yard in FY11 from RMB10.57 per yard in FY10 due to improvement in product grades

-       EPS in FY11 surged to 28.65 RMB cents from 10.00 RMB cents in FY10

-       Healthy financial position with cash and cash equivalents of approximately RMB228.1 million and with zero borrowing.

-       Proposing final dividend payout of 1.5 RMB cents per share

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