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

To: gcrispin who wrote (34120)	4/9/2009 12:54:28 PM
From: Paul Senior	Respond to of 78717

gcrispin. With a p/e of 2, debt-free, and the blessings of the Chinese government, it looks like a good bet to me. I'll follow you in now with a small buy. Negative to me is that it is a Chinese company - their politicians can quickly/arbitrarily change rules and who gets blessed and who gets cursed. (Not that politicos in other countries can't/don't do this.)

To: gcrispin who wrote (34120)	4/9/2009 6:27:24 PM
From: anializer	Read Replies (1) \| Respond to of 78717

Interesting idea. Has some potential but I do have reservations that will hold me back from taking a large position at this point. A smaller speculative position might be in order. Pros and Cons: This stock sells at tangible book, so while not extremely under valued, its priced OK. They did 6 cents a share in recent Quarter and if I were to extrapolate that, its 24 cents or a PE near 2. Chinese micro caps under $1 can be subject to manipulation easily. Chinese micro caps listed on the bulletin board have even more fraud risk. Chinese accounting is always a question mark. I note that the main competitors aren't exactly doing stellar. Chemtura already filed Bankruptcy and ALB is moving with the market but well off its highs in the mid 40's, has missed estimates the last 2 reported quarters, and analysts project a 15% revenue decline this quarter. All in all, not greatly excited but a small position should be OK. Just my thoughts, and thanks for kicking out the idea.