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Non-Tech : Beijing YanHua Petrochemical (BYH) Taking Off -- Ignore unavailable to you. Want to Upgrade?

To: Tony van Werkhooven who wrote (100)	2/7/1998 7:58:00 AM
From: Julius Wong	Read Replies (2) \| Respond to of 257

Tony: Friday was a good day for Chinese ADRs: BYH +26%, CEA +11%, GSH +11%, JCC +20%, SHI +15% I bought BYH because of great value ($7.50). I evaluate the company two ways: valuation and earnings. On valuation: BYH is the market leader in north China, I say that's worth $5 (?). The production equipment is worth $10. Then BYH is a $15 stock. On earnings, I use the number from Yahoo, $0.78 this year. At P/E 12 the stock should be $9.38, at P/E 15 the stock $11.70. I also think the $0.78 estimate was low because of the low oil price. Oil is the feed stock of all petrochemical products. Last year oil was $26, and the prediction for 1998 oil was $28. But now the oil price is only $16. There are few information on Chinese ADRs. Technical analysis may be a useful tool. Last week my technical analysis gave buy signals on several Chinese ADRs. Regards, Julius