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

To: hardincap who wrote (41849)	3/18/2011 3:32:11 PM
From: Spekulatius	1 Recommendation Respond to of 78752

BYD 1211.HK. I don't think the stock is cheap. Earnings are in free fall. i think they technological prowess is overrated too, my believe they are low cost operators due to efficient assembly and low cost location. I have seen their cars in China - they have a long way to go if they want to sell them outside China, imo. Even some of their Chinese competitors had much more solid looking cars. BYD is not even close to a buy for me.

To: hardincap who wrote (41849)	3/18/2011 4:59:00 PM
From: Madharry	Respond to of 78752

these are smart guys but the dynamics of an industry do change. what is going on in china in the car industry kinda reminds me of what they would say about some badly run business- they lose money on every unit but hope to make it up on volume.

To: hardincap who wrote (41849)	3/18/2011 5:13:07 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78752

Thanks for the Byd reply. I decided the stock's not for me. I closed out my remaining few shares. I don't understand Byd well enough to know that this Chinese company could be a leader, ahead of the Japanese, in batteries. Depending on how I look at it -- my luck, timing, or something else, I've had okay results following Mr. Buffett into some of his picks. With Mr. Munger - Wesco, his legal journal company (can't recall name of this public company) -- my results have not been good. I guess that experience will remain consistent here too for me with Munger's BYDDF. ================= Positive for Byd could be that it's beat down to a low, and might stabilize or recover from here. Among the Chinese stocks I am watching, they all seem to have been dropping lately, so maybe Byd's fall here is not due to a company-specific issue. Down is down, but in this case, I'd rather have a company down because it's caught in a general market decline, rather than because of some difficult issue relating specifically to the company's business prospects. For now though, I leave this stock to others.

To: hardincap who wrote (41849)	3/18/2011 10:53:13 PM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78752

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. With all respect I don't believe this is realistic. There are numerous companies working in the battery space, some with much higher resources and know-how than BYD. Even if their guys are really good, so far they have not invented anything that is way beyond what others have done. There is no way that BYD will become next Microsoft. They may be somewhat successful in battery and electric car production but that's the highest level of success they can hope for. This is and will remain a very competitive business. Not saying you should sell. Just saying what I think about the business.