NSomniyak Challenge:
I also accept the KIK Challenge.
As has been my custom for a number of PSL contests in a row, I'm going with six China stocks. Three of them I share with other contestants (CAGC, CHME and TBYH). However, three of them are solos. I can only hope that one of them goes ballistic - always a possibility with these types of stocks.
All of them are in good financial shape - if they can be believed. None of them have a lot of shares OS. All of them had to meet the earnings rule and their charts had to be at lows.
CAGC.OB: Fertilizer. With the cost of food going up worldwide and with the threat of internal uprisings in China because of the cost of food, one would think that you couldn't go too wrong with it being -64% since last October. The PE is a low 7.
CHME.OB: Pharma. As is the case with just about everything in China a person would assume that there will be more demand. You can go without a car, but when you start benefitting from better health care, you don't go back on that. The stock is -47% since last October. The PE is 5.
TBYH.OB: Cellular. I've owned this stock before in other PSL contests. It has really performed for me because it tends to spike. It's presently overdue. Who doesn't need (or want) a cell phone? It is down 42% since last October. The PE is 5.
TSTC: Communications. Pretty much the same story. China continues to build out all communications. You wouldn't think that would slow down until it is done - decades from now. The stocks is -44% since last October with a PE of 8.
WATG: Auto Parts. People keep buying cars. The stock is -37% since earlier this year. It isn't as cheap as the others, but none of the automotive stocks are. This is kind of ironic since auto stocks are generally cheaper in the western world. The PE is 14, still cheap.
WEMU: Auto Parts. What makes this stock intriguing is simple... 355,000 shares OS. If a fire is lit under it, it could go ballistic. The growth has been excellent, but it does have a 30PE. Still being -21% in three months makes it time for a rebound.
Len
Warren Buffet: 5 minutes and 17 seconds of pure, unadulterated, bulletproof, flawless logic.
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