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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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?
ReplyDeleteWould be good to hear more comments on Minzhong's business prospects, margins, numbers and ratios. Thanks!
My purchase was on fundamentals..
ReplyDeleteMinzhong 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.