(0684.hk) 106% ROI from Allan International Holdings Ltd.

By Marcus Maher
On June 5, 2009  my analysis of Allan International Holdings Ltd (HKEx: 0684) , a manufacture and seller of household electrical appliances, concluded that the Company deserved a 5 Star Rating and that intelligent investors should buy it immediately.

At the time the share price was HKD1.02, so the current increase to HKD1.99 plus the HKD0.12 dividend puts the return on investment at HKD1.09 or approximately 106%.  One million Hong Kong dollars invested in Allan would have grown to over two million in just six months.

At this point I suggest selling half of the shares you have in Allan International Holdings, essentially returning to cash your initial investment funds.  I am confident the fundamentals of Allan are excellent though with the present uncertainty in the markets 106% profit over a six month period needs to be realized.  The other half of the funds you have remaining in Allan I would keep as a long term investment with the dividends keeping you warm at night during turbulent times.

Marcus Maher

Chief Business Analyst – China

Disclosure: Marcus Maher currently owns shares in Allan International Holdings Ltd.

Remarks : Due to reporting and updating time-lag, readers and users should exercise caution when using the data presented in this analysis.