China Medical Share Discussion Threads

[dasv] 04/11/2009 14:42

Mirant Corp in the US has a PE of 0.92

[dasv] 04/11/2009 14:35

You can't keep a PE artificially that low for ever unless there is a real skeleton in the closet - i.e. there is something seriously wrong with the company. RCG is also too cheap but there are questions over ownership still?

[evaluate] 04/11/2009 14:31

I expect this to happen relatively soon.

Maybe the next sets of results will be the catalyst?

[dasv] 04/11/2009 14:11

with a bit of luck rises in chinese shares like WCC and CHMS will set a precedent (as higher rating) for shares like GNG and CHNS which have been underrated.

[dasv] 04/11/2009 14:10

Yep only a matter of time before market picks up on them then. Market is short term a voting machine but long term a weighing machine.

[evaluate] 04/11/2009 13:43

GNG has grown turnover by over 250% and adjusted EPS by over 60% over the last two years & the latest update indicates likely EPS growth of 20% plus over the next period - & well into the future IMHO.

On top of this, it has a balance sheet to die for. Net tangible assets cover nearly two thirds of the overall valuation.

CHNS has trebled revenues & nearly done as well with EPS in the same time period.

It has a valuation that is ENTIRELY covered by net tangible assets & is on a PE of just over 4.

Crazy, crazy valuations IMHO.

[dasv] 04/11/2009 13:28

CHNS - 16% earnings growth? Div cover and growth is good. I've always liked CHNS but never bought.
GNG - 15% earnings growth PEG 0.5?

[evaluate] 04/11/2009 13:11

CHNS, GNG for two.

[dasv] 04/11/2009 12:39

boadicea - if you know of any chinese growth stocks with similar balance sheets and growth rates then could you list the names/codes for me? If they haven't risen yet they probably will in due course.

CMSH immunity IMHO stems from defensive nature of sector plus balance sheet.

[nfs] 04/11/2009 12:04

can someone tell me if there is much volume or is it being makred up on minimal volume-there is very little free float so I suspect the latter which surely means just a 'guess' by market makers as they try to match a price against a perceived 'correct' PE based on expected EPS

[boadicea] 04/11/2009 11:32

dasv - Equally, why a p/e of 30 when other oriental stocks with similar growth rates are trading under 10 - some well under?
Why should CMSH be immune from the shadow generally perceived (rightly or wrongly) to lie over China stocks?

[boadicea] 04/11/2009 11:28

It's difficult to guess when to take a profit in something like this. Best bet is probably to take out the original input (at ~160p or less for the luckier ones) and let the rest run.
It will stop for breath at some stage, maybe come back to mid 300's, maybe not, giving time for a cooler assessment.

It hasn't been around long enough to establish a firm reporting pattern but we can probably not expect anything much before the turn of the year.

Anybody have any clues as to the impetus these have received over the past couple of weeks?

[dasv] 04/11/2009 09:28

I bought on the basis the trailing PE was too low for the earnings growth likely. I.e. PEG v. low.

If they can do 30% earnings growth then why not a PE of 30 (no debt - divi covered > 3 times).

Real growth market and China/BRICs in a V shaped recovery whilst US/UK in an L/U.

[stegrego] 04/11/2009 08:59

Incredible, just wont stop.

Have they found how to turn tap water into gold or something?

[dasv] 02/11/2009 10:54

well there's 400p for starters.

[mattjos] 30/10/2009 14:51

too far now, too fast & on no news, imo. needs news to keep the legs. great company & great prospects but i think it needs to consolidate now

[stegrego] 28/10/2009 08:35

Just keeps going up and up.

Ive sold this morning for 150% - dont want to get too greedy!

Doesnt seem to want to stop though, so probably not the best move in the world but im happy for now.

[boadicea] 28/10/2009 08:31

Whatever the fuel propelling this upwards (other than the obvious - persistent buying pressure in an illiquid market) - it certainly isn't bb ramping!

A serious retrace is inevitable at some stage - but when?
One can only guess - I would hazard a balk at 500p.

[fr4dge] 27/10/2009 13:01

Well it certainly seems to be working so far.

[jimmy1471] 26/10/2009 21:29

And ditto from me!! :-) Anyone got a target for this one??

[dasv] 26/10/2009 11:20

cestnous - me too. I make far more money on quiet threads. Some of the threads I have started are extremely quiet but have been rather lucrative.

[cestnous] 26/10/2009 10:47

Why is it that I always seem to make more money on the quiet threads?
Lovely chart.

[fr4dge] 20/10/2009 14:45

Agreed dasv.

My only regret is that I couldn't buy it through my IG CFD account.

It's much easier to wade in through leveraged CFDs.

As a consequence, my gains are a little less than they might have been.

Oh well - not the worst problem in the world to have.

[dasv] 20/10/2009 14:25

well it helps me to stay patient. I've had such good gains elsewhere this year that I was beginning to think I should move my money out of CMSH and into something with more momentum but it seems the market has after all not forgotten it.