China Growth Stocks

[cleezdeez]

YONG- look, anytime someone is "expecting" a P/E of 50 to 100, there is a great chance they will be sorely disappointed. Especially when said stock currently trades at 5. I agree 25 is doable if the stars align, but I think you would also agree 25 is a lot different than 50 or 100, which was my original point.

I'm keenly aware of the reasons behind the depressed multiple and the state of the Chinese RTO space. The reason YONG trades at a forward P/E of 5 instead of 50 is more complex than simply being a Chinese RTO. Dilution, outstanding warrants, product acceptance, execution and margin sustainability are just a few concerns particular to the co. But again, I'm long the name, so you're preaching to the choir man.

FWIW, I prefer to use a conservative DCF estimate of valuation, so multiples are just a crude BOE technique for me anyway.

What makes you so sure YONG is different from CCME anyway? I think they're both tier ones and if I'm not mistaken you thought the same three weeks ago, though you claimed to be long only CCME. I certainly don't mean to incite you, but since you're so vocal with your opinions I thought I'd ask.