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: Paul Senior who wrote (42609)	5/12/2011 9:44:15 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78464

re CHL- I do think that CHL should not be compared to Chinese RTO. CHL's positives are that it is listed in HK and pays a decent dividend. It is the flagship Chinese company in he wireless sector. Having said that, the government does have a heavy hand into this. They forced (my interpretation) them to use an inferior Chinese standard for 3G which gave the competition a leg up, imo. They also have a stake in a Chinese bank: Message 26562572 However the value of the bank stake is fairly small, compared to the EV of CHL. For me the interesting angle with CHL to have a growing and purely domestic business with utility like economics that obtains it's revenues in RMB. I expect to see a 5% annual tailwind on CHL value solely based on slow RMB appreciation.

To: Paul Senior who wrote (42609)	5/13/2011 12:00:13 AM
From: Shane M	Respond to of 78464

Guessing that if so many of my small cap Chinese companies have problems with one or more of poor accounting, poor governance, hidden ownership or hidden deals, little regard for outside or foreign stockholders, then that may also be true for the larger Chinese companies. I recent sold CHL for that reason. Good point there. I'm totally out of sync with the market on CHL so clearly there's something there that I don't understand. I bought/ sold for a loss... then rebought and am a tad underwater on my second buy again. I think maybe many years ago I might've done OK on this one, but recently the market is seeing different things than I'm seeing. The accounting concerns in China could be exactly what's behind poor behavior in this one for the last long while.