Imported waste quota
tnevills
7/12/2011 7:39:58 PM
Good call on the waste quota - they announced their approval just yesterday. Being supply constrained (i.e., they can process more than they are taking-in) on the imported waste plastics, this is a very good thing for them - making their 2-3x earnings multiple pretty humorous and/or interesting.
Re: Some background check of GPRC
tokyogai
6/21/2011 5:20:28 PM
I do agree that if you keep the amount low and have expectations, it can be fun. maybe it is cheap entertainment.
Re: Some background check of GPRC
Value Hiker
6/19/2011 6:15:42 PM
It is fine to speculate a small amount from time to time, be sure you are not thinking it as an investment. Otherwise, you are doing mental accounting.
Cheers;
========================================================
An investment operation is one which, upon thorough analysis, promises safety of principal and a satisfactory return. Operations not meeting these requirements are speculative. - Ben Graham
Re: Some background check of GPRC
driven
6/18/2011 11:23:36 PM
I'd feel better if more than one anaylst tracked this stock. But it's so low I guess it could be worth a gamble. What would I have to lose? The cost of dinner for two at my favorite restaurant to get 100 shares?
Some background check of GPRC
Value Hiker
6/17/2011 5:52:21 PM
Just did some background checks on the GPRC, some thinkings are here:
1. The CEO (Mr. Chen Ming) established three businesses in the past decade: one in 1999, the other in 2002, then in 2005, the GRPC, all in the same business. The other two were folded up very quickly.
2. Around the city FuQing, there are dozens of companies do the same kind of plastic processing business. There are no patent protection, barrier of entry is low. It looks like a high competitive business to me.
3. But GPRC claimed above 30% of profit Margin. The only explanation I can find is the labor cost was low, but every other factories in that city can hire same kind of worker, how can GPRC achieve such high a margin, especially consider GPRC is not that bigger than anyone else.
Until I understood how they achieve this kind of profit margin, I will stay put.
I agree, I have invested in several of these RTO's in China over the years and was burned on every one of them. It's amazing the amount of bull that is sold as they keep stringing you along but it is so hard to find out any valid info other than what they are pitching. After a couple burns I am skeptical to ever do it again.
Re: Hidden gems
tnevills
6/16/2011 3:10:47 PM
BDO is one of the good accounting /audit firms.
Ironic that you cannot pickup a newspaper, open a financial page or blog for that matter that doesnt mention China, yet the micro-cap China plays are some of the cheapest plays in the market. This one (GPRC) is excellent - well run, conservative, and has capacity ready for the license to use it.
I do a lot of business in China and it is unfortunate that the most humble and mindful companies don't feel the right to defend their stock by releasing favorable press releases that is the norm of typical US companies. If they'd hire IR like the US companies, these stock could trade as high as, say - 8x earnings!
Re: Hidden gems
tokyogai
6/16/2011 1:52:41 PM
You even have to be careful of the big names. the local offices work to different standards. BDO is one of the good ones.
Re: Hidden gems
yalanand
6/16/2011 1:45:34 PM
" I would caution people , however, due to the lack of solid accountimng information,"
@tokyogai, I totally agree with you. I hope all the auditing is done by companies like BDO Limited which has international recognition so that investors can be rest assured of their investments.
Recycling Plastics has a powerful advocate in China -
The Chinese government is generally in favor of efforts to improve the environment and they don't need to spend a lot of time and effort debating decisions before they can take action.
The blogs and comments posted on Investor Uprising do not reflect the views of Investor Uprising, PRNewswire, or its sponsors. Investor Uprising, PRNewswire, and its sponsors do not assume responsibility for any comments, claims, or opinions made by authors and bloggers. They are no substitute for your own research and should not be relied upon for trading or any other purpose.
|
 |
Latest Blogs
Telecom-equipment maker Ciena is a stock trader’s dream, as long as the timing is correct.
The FTC is offering a $50,000 cash prize to the person or group that can come up with a solution to those annoying robocalls.
Akamai is in the middle of four significant tech trends.
John Malone of Liberty Media will be taking over Sirius XM satellite radio when the existing CEO Mel Karmazin steps down. What's it mean?
Demand for students of the humanities exists, despite widespread aspersions on the discipline.
IU Education
Resources to help you become a better investor
Investor Uprising on Twitter
25 market-moving companies we're tracking
|
Tweet This