Student Jeffery question

"any comment on GKE Int'l? how is the FA for this. now i am stuck in this counter at 0.49. but my FA is weak. is it worth holding for long term? i did see news abt GKE buying up Van der Horst Biodiesel."
http://www.channelnewsasia.com/stories/singaporebusinessnews/view/272200/1/.html

My advice;
-You should never touch sesdaq companies as what I mentioned in class during the 1st class. This is because their market capitalization are smaller and subject more extremely to market volatility. Hence they are riskier.

Q1) How do you check that?
-Go sgx.com , listed companies, live quotes. Those with a "S" beside the counter means they are sesdaq companies.

Q2)What's the difference btw sesdaq and mainboard?
-To be listed on the mainboard, the company capitalization got to be a certain level. That means those listed on the sesdaq are smaller companies compared to the mainboard.

My advice continued:
GKE are making a loss in previous years. In addition , their loss has increased from 2004 to 2005. So basically, this company is not good. I guess this student did not read the annual report before investing.
Tip: One should always read all financial reports before investing. It doesn't matter if the stock was very high recently, and now is quite low. Example if a stock was $1.5 and now is $1, should u buy in? Answer: Price should never be your first indicator. You should always analyse the fundamentals of the company. If it is bad after analysis, you should never touch this stock no matter how cheap it is now. Because you might be buying a worthless company and the high price was being speculated up and not due to any good company news releasing.

This student made a mistake that all newbies made. Looking at the price of the stock to determine if you think is worth it anot. It's abit dangerous right now for this stock, if they keep making increasing losses, the stock should continue to go down.
Tip: Never buy companies that make a loss in recent years. This is extremely risky. Even when the economy is bad, they should still make a profit.

However they seem to enter the bio diesel market with the acquisition as their current market may not be doing well. Even so, normally for me, once i see a loss, I will never buy this company. This is because, I feel that their primary business should be profitable first (this is the business that made them listed also right). If not, that means the management or the industry is not good, and it is better to avoid such companies. They are too many good companies to park your money, why pick a lousy one.