Wednesday, September 21, 2011

China VTM Purchased

This morning I added some more shares in China VTM (HK:893) to the portfolio. With a trailing PE of less than 5x and a trailing dividend of above 4% the current share price offers attractive fundamentals which are expected to improve further. The balance sheet is sound with a net cash position (although that is likely to change as further investment is made). The fact China VTM supplies raw materials which are of strategic importance to the PRC and in respect of which three global mining companies are industry dominant is an added attraction.

I paid HK$1.52 for the additional shares.


Anonymous said...

I think when HK property prices start to tank you'll be able to pick up stuff like this at much much lower prices.

Anonymous said...

anonymous, so you think that you are one of those who can predict how property prices move? you must be one of the richest in HK now.

traineeinvestor said...

Well I can certainly buy it a lot cheaper now..... :-(

I would not expect volatility in the property Hong Kong property market to have any impact on this particular company's earnings. If the property market tanks then share prices would be expected to fall accross the board on sentiment/wealth effect.

I have no ability to predict much of anything, but given the current economic backdrop and HK government policy of increasing supply, I am not bullish on HK property at the moment (and have not been for some time).