22.5.12

Buy China Minzhong @ 0.62 22/05/12

If you are looking for a value stock to invest in this period, there is one staring right at your face and that is China Minzhong (cmz for short)!

While the stock market falls only 10% recently, cmz has without valid reason; plunged to a low of 0.58 from an average price of 1.2!

Thinking that it is a secret sell off by the management or other funds, i held my horses.

Right now, with templeton fund and lin guo rong (CEO of cmz) buying back with huge amounts, it has prompted a reversal ytd and closed at 0.615.

I have bought them at 0.62 and decides to hold it for some time here.. If it would return to 1.20, it equates to almost 100% return! :D

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2 comments:

  1. Just curious - any reasons for believing it can go back to $1.20? Was your purchase based on fundamentals or based on historical price action?

    Would be good to hear more comments on Minzhong's business prospects, margins, numbers and ratios. Thanks!

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  2. My purchase was on fundamentals..

    Minzhong is quite a steady business since Temasek is vested in it as well.

    I believe if i am not wrong, the ratios are all favourable at 10% for its net profit margin.

    If you compare it to the Yamada, Sino Grandness, China Minzhong has a much wider moat due to its economies of scale and variety of products they are selling.

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