China Mobile

Taka, not sure if they are cooking books, but as d.o.g pointed out for Dapai, some actions when done don't appeal to simple rule of logic. unfortunately corporate foul-play appears to have been fairly frequent in S- chips, Celestial et al.

But i think its worth taking a look at China Gaoxian, in the short time it has been listed, they have been paying out dividends, with no recent placements.. not sure if i have missed the boat though (recent runup to 24 cents)

Hi Taka666,

I think anecdotal evidence will show that there have been many S-chips which have cooked their books in one way or another. There is a term used in China for stock speculation called "Chao Gu", roughly translated it means "frying stocks". So I guess the Chinese must be culinary experts as they seem to incorporate cooking even into shares! But note that whether they stir-fry, roast, steam, poach or deep-fry their books, you can be sure the result is always the same - one soggy inedible mess for the shareholder!

(04-11-2010, 05:43 PM)Musicwhiz Wrote: Hi Taka666,

I think anecdotal evidence will show that there have been many S-chips which have cooked their books in one way or another. There is a term used in China for stock speculation called "Chao Gu", roughly translated it means "frying stocks". So I guess the Chinese must be culinary experts as they seem to incorporate cooking even into shares! But note that whether they stir-fry, roast, steam, poach or deep-fry their books, you can be sure the result is always the same - one soggy inedible mess for the shareholder!

MW, that was very visual! Yum yum (for the food and not to the stir-fried stocks)!

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(04-11-2010, 05:37 PM)gimbeng Wrote: Taka, not sure if they are cooking books, but as d.o.g pointed out for Dapai, some actions when done don't appeal to simple rule of logic. unfortunately corporate foul-play appears to have been fairly frequent in S- chips, Celestial et al.

But i think its worth taking a look at China Gaoxian, in the short time it has been listed, they have been paying out dividends, with no recent placements.. not sure if i have missed the boat though (recent runup to 24 cents)

China Gaoxian are involved in fabric making right? Isn't that a very price-competitive business as there will be many companies doing such a business especially in China where it's a manufacturing haven?

Paying out good dividends in the initial years of listing is no sign of corp governance or good business model. For those old timers on the WS forum who was burned by united food, they paid out very good dividends in the initial years and so far no share placement to date that i am aware. there are a few more in dr lim's stable of companies(S-chips) using this strategy to lure investors. at the end of the day is whether the business model is sound to ensure sustainable CF to pay div and alos cgood corp gov.

(04-11-2010, 05:37 PM)gimbeng Wrote: But i think its worth taking a look at China Gaoxian, in the short time it has been listed, they have been paying out dividends, with no recent placements.. not sure if i have missed the boat though (recent runup to 24 cents)

Hi Jacmar,

Who is dr lim ?
Thanks.

(04-11-2010, 07:57 PM)cyborg Wrote: Hi Jacmar,

Who is dr lim ?
Thanks.

He has officially retired for "health reasons".

(04-11-2010, 08:10 PM)Jacmar Wrote:

(04-11-2010, 07:57 PM)cyborg Wrote: Hi Jacmar,

Who is dr lim ?
Thanks.

He has officially retired for "health reasons".

Is he a real doctor or a bogus guy?

hmm i wonder why u say that momo. just because it is in a clean bill of health it doesnt have to be a suspect. its not uncommon to find well run telcos.

Chunghwa telecom which is a telco in taiwan is appreciating, pays out a 6% yield and no debts for many years. I don't think that is a suspect as well.

there is no rule that says that telco's must take on debts and i believe these big players have more benefits then small scale ones.

Based on my past research in sinotel, I have not much grounds to believe china mobile can collapse. It may cook it's books all it want as corruption is still rampant in china (in fact they might be underreporting their profits) but being one of e largest telecom in china and largely government supported firm like singtel, this is a pretty safe bet if at discount and for mid term. For all u know, as an oligopoly industry with no complete penetration of e entire market like rural areas, e room for growth is tremendous. Note we are not even talking about full utilization of 3G or even fibre optics.. My 2 cents anyway

mrEngineer, the telcos like starhub and m1 in developing countries are having too much margin pressure from the big boys. today i see the price of starhub and still cannot fathom why people would pay to that extend.

i find china mobile a more compelling company. could be a good company bad stock.

what is your assessment of sinotel now man?