-3x Short China Discussion Threads

[bbluesky] 22/1/2011 22:16

Back to 10 year hold argument. I have to say I am very disappointed with stockopedia, which is a useful source: really poor, disgraceful quality of journalism. Is the editor on hols?

[mattjos] 22/1/2011 20:33

why is the fixation on telcos here? even basic research will hilit that same type batteries have have much broader useage than sat in a telco hut.

[crawford] 22/1/2011 18:07

Yes poor article unfortunately, I hope nobody acts on it

[maxk] 22/1/2011 11:37

rivaldo.

I have no position, just passing the info along.

[rockafella2] 22/1/2011 11:32

Writeup here -

[rivaldo] 22/1/2011 11:15

Maxk, as alreadyb stated the above article from Investors' Champion is completely incorrect!

He's used the figures from 2008 as his benchmark, not from 2009 - this makes a HUGE difference to his calculations and the thrust of the article as he should be looking at a drop from £23.5m, not £10.3m :o))

He should withdraw his article pronto and revise his stance somewhat given that CHNS actually BEAT forecasts by 15%...

CHNS produced 70p EPS - up from 43p EPS two years ago. Pretty good compound growth, as noted by others here, interrupted by an exceptional year last year in which CHNS earned 98p EPS.

It's worth noting that CHNS had £40m net cash (including short-term investments) at 31/12/09 - this could now be anything between £50m and £58m.

Not bad against a £64m m/cap. even when taking liabilities into account.

[yump] 22/1/2011 10:47

Hasn't helped to have that come out at time when there's the 'China overheating' type headlines. Double ammunition to mark it down just in case a load of pi's take fright, or can't do percentages very well, combined with not knowing what year it is ;-)

[evaluate] 22/1/2011 08:36

If CHNS has turned down enough orders in '09 to come in with EPS of 50p, this would be up near the £7 mark by now!

It's amazing that the bumper year has had such an unfortunate effect on the share price.

Crazy really.

[rivaldo] 22/1/2011 07:34

Correct Steg. The prat from Investors' Champion has used the figures from 2008 as his benchmark, not from 2009 - this makes a HUGE difference to his calculations and the thrust of the article as he should be looking at a drop from £23.5m, not £10.3m :o))

He should withdraw his article pronto and revise his stance somewhat given that CHNS actually BEAT forecasts by 15%...

[edmundshaw] 21/1/2011 16:54

I, on the other hand, was out of bed at 6.45, checked for RNSs at 7.05 and 7.20 then went out to see some friends and have a life.

RNS at 7.30am... :-(

[rivaldo] 21/1/2011 14:08

T'would indeed be ironic if CHNS finished in the blue.

Considering CHNS should actually have issued a "materially ahead of forecasts" RNS, this morning's statement was pure incompetence on the NOMAD's part.

If CHNS were in the business of buying back shares they could have cleaned up.

[martylangan] 21/1/2011 12:44

Be nice if these ended the day up!

[stegrego] 21/1/2011 12:32

275p I assume you mean - either that or give me the name of your broker! ;)

[polythene] 21/1/2011 12:32

275P? I couldn't buy online at 235 this morning. No time to ring broker.

[edmundshaw] 21/1/2011 11:58

Rats. Out early this morning, so missed the bargain time. Well done eacn.

Still managed a few after I got in though at around 175p; still good IMO, a 10% markdown from 305p with results comfortably over 10% ahead.

[crawford] 21/1/2011 11:07

rivaldo,
good news, thanks for the article.

[rivaldo] 21/1/2011 10:59

Seymour Pierce have now confirmed that the EPS will be around 70p, i.e 10p EPS more than forecasts!

GCI say this is a "good buying opportunity":



"Chinese bump for Shoto
Article Date: Jan 21 2011

China Shoto (CHNS), the maker of batteries and a supplier of back up batteries to China's telecom operators, has announced that reduced spending from three of its biggest telecoms customers will hit profits.

In a trading update for the year-end the AIM-quoted concern remarked that a 'substantial decrease in the level of investment' made by the three major telecom operators is expected to 'adversely affect' the company's performance for the year though adding that the high levels of spending in 2009 by telecoms operators was partially driven by a stimulus package from the Chinese government.

As a result Shoto announced that it expected net profits to be 30 per cent lower than last year, which has sent the share price down seven per cent this morning to 278.5p.

Following the update analysts at Seymour Pierce suggested an expected earnings decline from 100p to 70p, some 10p ahead of the 60p EPS forecast it had originally pencilled in.

Last recommended by Growth Company Investor at 173.5p in April of 2009, the shares have gained 60.5 per cent since, with its current price 278.5p.

2009 was a particularly good year for the company, with the record levels of sales and profits at the concern driven by the Chinese government's stimulus measures. Trading on under four times earnings, we think the market has overreacted to the news, with a fall in profits and sales on the previous year expected and that now represents a good buying opportunity.

Buy/Hold"

[crawford] 21/1/2011 09:47

I've sent an email query to the company to clarify.