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AIM listed West China Cement (WCC ) One should rightly be suspicious of any Chinese companies listed on AIM as many are scams but WCC seems interesting in that it plans to delist from AIM in order to quote on the Hong Kong stock exchange (sometime in May 2010) where multiples are higher and liquidity greater. In October last year new auditors (PWC) were appointed and the last set of accounts were altered to reflect a more stringent attitude to the truth than what one normally expects from the joke that is AIM. The reason to buy WCC is as follows. It is expected to make around 110p EPS in the year to December 31st 2010. At 630p that puts it on a PE of 5.7, probably correct given AIMs track record for foreign disasters. On the HKSE however cement companies trade on around 18 times earnings which would put WCC at 900p on historic earnings and 1,800p for next year’s if forecasts are to be believed. The downside is a collapse in China which is, in my opinion, no negligible risk, but there are other ways to plan for that and on balance WCC is a nailed on buy. Lucian Miers is East London’s most feared short seller 19 Mar 2010 |
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| aus der Diskussion: | West China Cement profitiert vom Baumboom Chinas - 586 Mrd. $ für Infrastruktur! |
| Autor (Datum des Eintrages): | ZenoCyprus (29.04.10 21:25:15) |
| Beitrag: | 71 von 94 (ID:39428800) |
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