China Fish - Is it cheap now?

China Fish has just reported their second quarter results and it seem satisfactory with revenue increasing by 24.1% and gross profit by 20.9% and net profit by 16.6%.

Weaknesses:

1. Increase in Vessel Operation Cost (up 30.2%) and Cost of sales (Up 54.2%). Their result has been affected by increase in fuel price.
2. Increase in Trade Receivables - a problem nagging a number of companies due to credit tightening.
3. Next quarter results may be affected by closures and restrictions due to Olympic.

Strengths:

1. South Pacific fishing operations underway with 2 supertrawlers deployed to the vicinity.
2. New quota system in Peru will enhance the Group’s efficiency and performance.
3. Oil price is on the fall, and consumption is expected to increase.

Considering the bad market sentiment now, for a good safety margin, I will buy this stock at a price of $1.13 pegged to an estimated forward PE of 5 and 3% dividend yield, if you are thinking of buying.