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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: gcrispin who wrote (32457)	10/14/2008 6:10:44 PM
From: Jurgis Bekepuris	1 Recommendation Read Replies (2) \| Respond to of 78750

Heh, there are tons of Chinese companies below net current assets, some below cash, usually with no debt, all of them profitable. ACTS, CHME, HRAY, KONG, LTUS - just some that I have. GU may be good, but it's not an exception. :)

To: gcrispin who wrote (32457)	10/14/2008 6:33:04 PM
From: Jurgis Bekepuris	Respond to of 78750

Just for reference GU NCAV is about $160M, the company is trading at $272M market cap according to Yahoo. I am not saying that it will drop to NCAV, but it's not as cheap as some other Chinese companies. Since I still have no clue how biodiesel will work going forward, I'll probably skip. I have too many oil stocks that will do great if oil goes up anyway. If oil goes down, I am not sure biodiesel will be a place to be... The interesting part is that oil is heavily subsidized in China (sold at ~$45 per barrel, I think?). I wonder if GU was making money at the subsidized prices or if they are getting some kind of kick back subsidies. No time to check now though.

To: gcrispin who wrote (32457)	10/14/2008 7:33:08 PM
From: E_K_S	Read Replies (1) \| Respond to of 78750

Hi Gcrispin - Do you know if they sell and report their earnings in "yuan" and then convert to $US. My interest is not only in a profitable company that pays a decent dividend but as a kicker I believe the "yuan" will stay strong vs the $US. With all these $US used to stimulate the world economy, I am concerned that U.S. inflation may begin to rise in three to five years. A Chinese company that generates their sales and profits in their local currency and then converts it to $US, would be an excellent currency play (hedge) against a falling $US. EKS