The Tyhoon No.8 reduces to No.3 before noon so I have to go to work. This is Central Hong Kong. I took some photos along my way. My office is somewhere on the 20th Floor in the middle of the photo.
Entries from June 2008
Cosco International 517.HK
June 25, 2008 · Leave a Comment
Today is typhoon no.8 in HK and so I can stay home and do some stock mining.
When I look at Cosco, I cannot believe the PE is 2.24. I thought there must be a mistake. Cosco is a very good company and PE used to be very high.
In the next few days I will dig deeper and write a few more articles.
| Cosco 517.HK | Cheung Kong 1.HK | |
| Issued Capital shares | 1,479,000,000 | 2,316,000,000 |
| Share price | 3.95 | 112.1 |
| Market Capital | $5,842,050,000 | $259,623,600,000 |
| Share holders funds | $4,901,000,000 | $90,156,000,000 |
| Share capital | $147,000,000 | $1,149,000,000 |
| Share premium and other reserves | $4,754,000,000 | $89,007,000,000 |
| Earnings | 1.759 | 11.9499 |
| PE | 2.245594088 | 9.380831639 |
| 08 earning estimate | ||
| Low | 0.43 | 4.58 |
| High | 0.78 | 8.41 |
Note.
1) Market capital of Cosco is just 30% higher than its share holders funds where as Cheung Kong is 250%.
2). Earning estimates for both companies are low.
3). If we take the low Cosco earning estimate of 0.43 then PE=11. Which is still cheap.
From a glance Cosco is very cheap. I will dig deeper to find out why investors are unfavouring this company which had a huge run up to its price.
Categories: Cosco
Soap in water
June 23, 2008 · Leave a Comment
A good stock is like a piece of soap submerge in water, always wanting to float to the top. However if the soap is in the river then it is subject to random natural forces like wind and rain pushing down. Stock market turbulence will push the stock price of a good stock down. Just like the piece of soap being push down as it travel across a mini waterfall. However we can be assure that when the downward force goes away the soap will float to the top.
Want Want is like this piece of soap. It is being push down again and again by bad weather. When the storm is clear, it will float to the top. No one knows for sure whether there will be more bad weather ahead. However we are very sure, the current stock price is very attractive. It is below its intrinsic price.
Categories: Want Want China
