Dean,
LFC
I had issues pulling data for LFC. I did find an article: http://biz.yahoo.com/zacks/081027/15517.html?.v=1
I couldn’t read their website either. I am not sure that I trust any of the numbers on this company. So, I really can’t form an opinion. But, based on the Zacks article and based on the reasons I can find in blogs as to why people are bullish. It looks like there is a lot of room to grow and they probably have a competitive advantage. I’m just not into it. I think compared to the rest of Chinese Stocks, it’s PE looks to be too high.
PTR
Revenues show a good rate of growth. Earnings per share have been falling. But — they made good in December 2006. Their last quarter was up 30% because of higher oil prices. I know that the Chinese government has been subsidizing oil prices for the past year cause they were so high. I think that at $80 a barrel, the government was covering the rest or something — unsure.
According to yahoo, both have little to no debt and are trading just above book value. I’ve been trying to stay out of areas in the economy that are getting a lot of publicity—the financials, auto, oil, banks, insurance.
Actually wait — I came across this website about 3 months ago.. and then I spent an hour going through my history to find it again.
http://chinabizfocus.com/modules/InvestChina/
http://chinabizfocus.com/modules/InvestChina/stockratios.php?sel=tradingideas&subsel=pe
To price Chinese companies, I take what I would pay for them in America and slash their price in half. Also, people aren’t paying for growth right now — so you can get it on the cheap. One of these days, companies that are priced at PE ratios of 0.50 and Price to book values of 0.50 will come back if they survive — and they’re growing. I’ve been looking for a few deals in Russia. If you can find a site that’s like this for Russian ADRs — send it my way.
Glen
From: Dean Davis
Sent: Thursday, November 06, 2008 1:42 PM
To: gbradfo
Subject: CDEC
Glen,
I appreciate the CDEC recommendation. Made a quick 32% gain in less than 4 days, but got out a little too early. Will get back in if it pulls back. I live by the idea that pigs get fat and hogs get slaughtered.
I looked at one of your recommendations and really, really like YGE. What are your short term and long term thoughts on this one? I would really like to just buy and hold for 5-8 years.
I have been looking to put some huge blocks of money into both LFC and PTR. I like the markets in China also because of the huge growth potential, cheap labor and international exposure. These two companies are market leaders that have been beaten down. They have huge stockpiles of cash, huge YOY growth numbers, low PE’s, high EPS numbers, and pay good dividends to boot. Do you see any reason I should be leary in buying these two stocks?
BTW, you have provided better stock picks than any so called “professionals” I have used in the past. When you decide to start an investment service, I will be one of your first customers. I like the criteria you look for in determining a stocks potential.
Thanks!
Dean Davis
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