1398 can it drop to 3.5?or lower

As of last closing (1 March) price is 4.19 while the PE is 28.79.

If it drops to $3.5 that means it PE drops to 24. A more attractive as compared with other Chinese's bank.

Assuming the market accepts a lower PE (say at 24) while its profit growth is 45%, then it projected price should be $5.06.

Without a 'great' bad news of the company or any political issues, $3.5 is a good chance for long-term investment.

2007-03-03 11:50:33 補充：
If 1398's profit growth is not as higher as than investor's expectation, the PE will drop significantly to a 'more reasonable' value, such that the price drops to lower than $3.5, or even back to its IPO price.

2007-03-05 09:49:36 補充：
現時股價位高，隨時因調整而下落再拾軌而上，你可考慮脫手一部份以賺取利潤。

under the certain climate, 3.5 is possible. 1398 is over value and need a big correction.

As the market is facing a lot of uncertainly from the issue of Chinese Gov. 5 Banks & 3 Inssurrance facing a high selling pressures. 1398 is the right choice among those 5 Chinese Banks in Corp Gov. issue

$4.00 is not a support level, I would say firsttest $3.8 and very support at $3.6.

So $3.6 - 3.8 should be a good buying opportunity !