Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Paul Senior who wrote (29213)	3/28/2008 11:40:41 AM
From: Jurgis Bekepuris	Read Replies (1) of 78702

Chinese pharma stocks are actually pretty interesting from growth perspective. CHME just reported earnings which jumped up also pushing its book value. The stock also responded nicely. At this time I hold some AOB, CHME and LTUS. I think all of them are cheap. AOB has the best margins and the biggest size. CHME is arguably cheapest although LTUS has not reported 2007 earnings yet. The issues going forward are mostly the same that I mentioned before: reliance on unproven "Chinese medicine" compounds, stricter regulation, more competition, more distribution business with lower margins, share dilution - all of these companies issue shares or convertibles for growth, shady sales to related parties. LTUS had some financial report restatement for last years, although it was possibly immaterial and more of a mistake than a fraud. The positives is growing Chinese pharma market, improving health care situation across China, and management incentives to grow the companies. IMHO, the shares are cheap with huge Chinese selloff and may offer a good entry point for value investors.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next