23-03-2023, 10:20 AM
Of course cheap can be value trap or failing company so I am.always extremely cautions.
But j have been looking through thousands of Chinese companies and their balance sheet. So are quite remarkable in the realm.of value investing history. We don't see this type of valuations except if we travel back in time to the 1950s but to do this we have to dig deeper into the markets. Problem is some of these companies are on Shanghai or Shenzhen exchanges only. The bigger ones are also listed on HK but less opportunities.
Here is just one example. This one is relatively big shipping company OOIL.
Last yr it paid 35% dividends yield. Thus yr 55% dividends.
Total dividend returned in 2 years is 85%. PE ratio is 1
Stock price was $140 and it paid $75 in dividends.
This is just one of many. But even Big caps like Tencents and Alibaba valuations are so low they just don't make sense. It's like post Asian crisis in some Asian countries when everyone left the market and just don't care. The Chinese money tends to bet on industry promoted by the CCP and you tend to seee concentration of money in these and everything else is neglected.
But j have been looking through thousands of Chinese companies and their balance sheet. So are quite remarkable in the realm.of value investing history. We don't see this type of valuations except if we travel back in time to the 1950s but to do this we have to dig deeper into the markets. Problem is some of these companies are on Shanghai or Shenzhen exchanges only. The bigger ones are also listed on HK but less opportunities.
Here is just one example. This one is relatively big shipping company OOIL.
Last yr it paid 35% dividends yield. Thus yr 55% dividends.
Total dividend returned in 2 years is 85%. PE ratio is 1
Stock price was $140 and it paid $75 in dividends.
This is just one of many. But even Big caps like Tencents and Alibaba valuations are so low they just don't make sense. It's like post Asian crisis in some Asian countries when everyone left the market and just don't care. The Chinese money tends to bet on industry promoted by the CCP and you tend to seee concentration of money in these and everything else is neglected.
I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.