China Blue Chemical (HK:3983) shares took a tumble this morning after the release of interim results that were viewed by the market as being disappointing. Based on my read of the results, the company is still in very good shape - the annualised PE is at or little below 10x, the cash from from operations is still very good and the balance sheet is very robust (the company has a large amount of net cash). While some of the factors which contributed to the decline are likely to remain relevant for some time, others would appear to be cyclical. Lastly, the company is operating in an industry which should be supported by government policies.
I paid HK$4.59 for the additional shares.
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