China stock basket?
PWRD, GAME, XIN, CCM -- all seem cheap to me and are returning cash to shareholders via dividends and buybacks.
As Paul warned, they all could be scams and paying dividends to juice the stock price so they could sell more shares, but this doesn't make sense to me. There is no guarantee they will get a return on the cash they pay out (in fact, none of the share prices are really up all that much). If they were scams, why not just keep the cash?
At this point, I am thinking about owning a basket of these stocks in order to reduce the risk from an individual issue. If there are good ideas from the board, I'd love to see them.
I would much prefer larger/well-regarded stocks and/or stocks buying back shares and paying dividends to stocks with just ridiculously cheap valuations. Right now is "show me the money" time. If a company is at a PE < 5 and not buying back shares or paying dividends (GURE, SPU a couple examples), I think the management must either be corrupt or incompetent and am not interested. I want to see the companies doing right by their shareholders.
That being said, the stocks have to be cheap enough to qualify as bona fide value investments.
Thanks,
MC |
