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

To: Paul Senior who wrote (41835)	3/17/2011 10:54:44 PM
From: Jurgis Bekepuris	Respond to of 78752

I spent some more time on BYDDF. The big question about the BYDDF is the market cap. IMHO, Yahoo and Google are both wrong. Assuming the US$3.98 BYDDF price or HK$30.95 1211.HK price and multiplying by 2,275,100,000 shares, yields US$9B market cap. I am not sure what Yahoo and Google use, but their numbers are 4.5B and 3B respectively. IMHO they only count H shares or domestic shares and do not count the share total: --------------- As at 31 December 2010, the share capital of the Company was as follows: Number of shares issued, Percentage(%) Domestic shares 1,482,000,000 65.14 H shares 793,100,000 34.86 Total 2,275,100,000 100.00 --------------- Reuters confirms the US$9B market cap: reuters.com by corresponding HK$72B market cap. If we assume US$9B market cap, the P/E is pretty high and expected return is pretty low. In 2010 company's mobile division grew more than auto division. It's not clear that either business is sustainable and will have great margins long term. On the other hand, TSLA is still trading at $2B market cap with no earnings whatsoever. Buy American? :P

To: Paul Senior who wrote (41835)	3/18/2011 1:43:55 PM
From: hardincap	Read Replies (4) \| Respond to of 78752

My reason for holding it and adding more if it drops is actually pretty lame. First, this is NOT a Buffett investment; it is a Charlie Munger and Li Lu investment. They have been studying the company since 02/03 and are very bullish. I believe they are expecting it to be the Microsoft of the battery market (which includes but is not limited to electric cars): set a standard platform, in this case the battery, and make everyone else have to build on top of your platform. I have tremendous respect for Mr Munger and Mr Lu, and am happy to coattail their moves. Li Lu added more to his holdings late last year I believe, at a price considerably higher than today's. My average cost is around $5.