Why I bought DEER at 11.10 this weekA lot of reasons:
FUNDAMENTALS:
-PEG ratio of 0.42;
-P/E 14.28; which is cheap for a growing company;
-Forward P/E of 9.17; cheaper than competitors;
-High gross margin compared to competitors;
-Return of Equity of 30%; can't complain about that;
-Net working capital of $90M;
-No debt;
-Earnings better than expected for the last 4 quarters;
-Management increased earning forecast;
-Demand from China is increasing;
-Even if a double dip recession occurs; people would still need to buy kitchen hardwares;
-Relatively new company, might be unknown by a lot of people and it is good to buy before the others;
-Float held by Institutions and Mutual Fund : 21%; which means a lot of shares could be bought in the next months;
-Insiders own a lot of shares, which means they believe in the company
TECHNICAL:
-Low volatility in the past 2 months;
-Looks like a cup&handle, a close above 11.50 = bullish and next stop might be $16
-Risking little to make big money
Any comments ?