CNBC is saying CPSL (a Chinese Precision Steel Maker) is taking share from foreign steel makers. What else can you expect? Some estimate the forward P/E ratio of this company is about 2.0, so if it were to catch up with the US market average forward PE of 16 - 20, the share price may appreciate 10 times in the next couple of years.
Remember, China will be hosting 2008 Olympic Games, that's why all the Chinese stocks are "red-hot" right now. Hold every thing you bought till 2008!
Year End 2007 China Precision Steel, Inc. Earnings Conference CallWed, Oct 17, 2007, 9:00 am Eastern
Listen to the archived event audio
Have fun,
Mkt Swimmer
4 comments:
their PE is 40. The only place I saw the super low PE that you posted was on yahoo. Apparently they are releasing a couple million more shares too.
I'm not so sure whether the argument of the Olympics Games is so solid. It sounds more like an excuse. I think if there is some panic episode the Chinese goernment will be able to do few things to avoid a huge sell-off.
BTW Jim Rogers said that he will keep his Chinese stocks until SSE doubles, so I guess until then we are on the safe side.
Best.
Thank you all for the comments. Fidelity cited Trail PE is 37.6 from S&P Compustat, but S&P Compustat's report showing PE for this year is 12%.
This is the problem with a small company without any analyst following them. Please keep pumping out the information, I think our readers will be benefited from it.
Mkt Swimmer
I think the argument about the olympic games is a more valid excuse than the Jim Rogers excuse.
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