LLEN - vs. PUDA
Rato: I, like many people on this board, respect your opinion and I read most of your posts in detail. So it is dismay to me of your negative opinion wrt LLEN over multi messages.
If your concern is with the macro environment, you can certainly say so directly, and I would agree with you. Yes, Chinese stocks listed in US are in dog house right now. They were heavily shorted. As I am writing this message, many stocks are suffering another bloodbath in today's early morning trading. Over the last two months, every negative comments, no matter how outrages in the beginning, turned out be to more correct than otherwise. You can recall JoeN vs. you and others on CCME many days ago - Joe was right on the big down fall of CCME's PPS at the time.
If you think PUDA is a better deal at this price point, I would partially agree with you. PUDA is a better deal based on fundamental numbers but I like LLEN's execution and communication better.
But fact remains that both are good stocks. Therefore there is no need to bash LLEN. If the Shanghai market stabilizes (it is choppy now) and US market goes up, both will go up and otherwise, both will go down. As a matter of fact, both LLEN and PUDA are in deep red now (down about 2.8% and 3.2% respectively.)
As an unwavering China bull, let me reiterate that 12.4x is a very reasonable multiple for well executed, high growth, and well communicated stocks such as LLEN (and CCME). It would not be today, or tomorrow. But when Shanghai bounce back from its choppy trades lately, and when the fear and uncertainty in US market subsidize, US listed Chinese stocks will surge with a vengeance.
BTW, I like the way you changed LLEN's target timeframe from 12 month to "Now":
My previous message was a response to this message of yours. You stated:
"LLEN - I have to say, I can't see how LLEN will go to 20 in the next year. A chinese coal stock with a 12.4 multiple? Pending a tight float SCOK herd situation, that's just not going to happen IMO, at least not unless the macro situation changes big time. "
Your message to my response:
"And if you truly want to pound the table that $20 is where LLEN "should" trade at in the current environment, then no problem, I'll gladly sell it to you for that price."
Thanks but no thanks. I bought LLEN on the market for way less than $10 and will sell when it is $20 or more.
AI
