Stock Picks for 2010

Changtian Plastics\' Q4 was a strong rebound with 191% jump in net profit. Q4 EPS = 10 rmb cents. Annualised = 40 rmb cents = 8 Sp cents. Stock price only 21 cents = 2.6X PE. Pity no final dividend. Something funny abt some S-chips - dividend payout not geneerous, want to save money for expansion.

I cannot understand why Changtian cannot pay dividends since they are making profits This is

Someone elsewhere highlighted a fact that their AR is VERY HIGH, almost 56% of the annual revenue. Selling alot but not collecting $$$ ? AND in the results Changtian stressed they have lots of $$$:

"Strong statement of financial position with cash and bank balances of RMB461.7 million" ? The company directors should explain clearly to shareholders WHY they are not recommending any dividends ! What are they holding up cash for ? :ohmy:

China coys majority hoard of cash but which one is real which one is phantom? Cash rich yet no dividends must really open your big eyes and see properly. I would say there are better spore local coys to invest than in China coys. We need how many suspended china counters to remind ourselves not to make mistakes again.

Funny how some companies in unsexy businesses can hv fantastic net margins. The other day, read about CJ Fertilizer. Net Margins 25% or more in 07, 08, 09. As I understand it, the industry is subsidized by the govt - electricity subsidy, and Value Added Tax exemptions. :dry: musicwhiz wrote:

Thanks Morpheus for providing the facts and numbers, I really appreciate it. Net margin of 7% if not high, but if the company can maintain steady and growing sales then it\'s a positive thing. I will need to look more closely at their business model, BAlance sheet and Cash Flow Statement, as well as this French acquisition you spoke of. OK time to do homework..... Thanks again!

Many S-chips look really undervalued but the question that remains is one of trust. China Hongxing, at one time a market darling, looks like it would continue its current malaise and might even decline further. Not vested. Personally, I have been burnt badly in the past by some S-chips. Unifood is one that comes to mind.

Many S-chips are seriously undervalued, waiting for a return of confidence by investors. This presents an unsual buying/accumulation opportunity, in my view, of S-chips that dont appear to be unreasonably managed or have unusual elements in their accounts. Perhaps some experts can comment on this list (which have been exciting me): 1. China Gaoxian Fibre 2. Changtian Plastics. 3. China New Town. 4. Li Heng.