Buy 0883.hk CNOOC LIMITED @ HK $18.1
Buy CNOOC here due to the following technical and fundamental reasons:
Technical
-50% Retracement of the last move up
- Support at 50 Day moving average at about $18.00
Fundamental
- 2014 Forward PE ratio of 5.5
- Growth in South China sea fields.
- Recent China govt policy support of the stock market
- Highly supportive dividend yield of 8%
- Strong balance sheet
- Still a very solid production growth outlook
Risks
- Extreme geopolitical tension may cause foreigners to be blocked out of trading Chinese equities, even if listed in Hong Kong (Like happened with Gazprom)
Target: HK $28 within 1 year
Stop: HK$ 15.00
Risk / Reward: 1:3
Technical
-50% Retracement of the last move up
- Support at 50 Day moving average at about $18.00
Fundamental
- 2014 Forward PE ratio of 5.5
- Growth in South China sea fields.
- Recent China govt policy support of the stock market
- Highly supportive dividend yield of 8%
- Strong balance sheet
- Still a very solid production growth outlook
Risks
- Extreme geopolitical tension may cause foreigners to be blocked out of trading Chinese equities, even if listed in Hong Kong (Like happened with Gazprom)
Target: HK $28 within 1 year
Stop: HK$ 15.00
Risk / Reward: 1:3
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