Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Spekulatius who wrote (41907)	3/23/2011 12:02:44 AM
From: st olaf	Read Replies (1) \| Respond to of 78748

I feel CHL is at an attractive price, but curious to hear thoughts on being long call options, say Jun 'll at 50.

To: Spekulatius who wrote (41907)	4/13/2011 12:16:11 AM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78748

I tried to figure out why CHL was so "cheap" compared to CHU. And here's the scoop: CHU is plowing a lot of cash into their 3G network expansion. And they got WCDMA network vs. CHL's TS-CDMA, which is the Chinese standard. WCDMA is considered better, so investors are betting that CHU will win a lot of market share at CHLs cost. Furthermore, CHU has iPhone: marketwatch.com I wonder if the CHU-positive-CHL-negative sentiment is overblown or if it's totally correct. ----------------------------- I recently read about Piotroski score and calculated it for CHL. Not very interesting IMHO, but here it is: 1. Net Income. Score 1 if last year net income is positive. 1 2. Operating Cash Flow. Score 1 if last year cash flow is positive. 1 3. Return On Assets. Score 1 if last year ROA exceeds prior-year ROA. 0 4. Quality of Earnings. Score 1 if last year operating cash flow exceeds net income. 1 5. Long-Term Debt vs. Assets: Is Debt decreasing? Score 1 if the ratio of long-term debt to assets is down from the year-ago value. 1 6. Current Ratio. Score 1 if CR has increased from the prior year. 0 7. Shares Outstanding. Score 1 if the number of shares outstanding is no greater than the year-ago figure. 1 8. Gross Margin. Score 1 if full-year GM exceeds the prior-year GM. 0 9. Asset Turnover. Score 1 if the percentage increase in sales exceeds the percentage increase in total assets. 1 Total: 6 / 9 Not bad, not ideal.