Agree..
Its probably the fact that the chinese owners can not let go....
All the chinese companies have major shareholders with huge ownership levels.....ie SBB IPO owners have over 60%.....pez they have around 80%.....seems its that free float issue....
Tightly held and they dont seem to want to sell......
Its easy to see what happens on very low volumes.....the share price goes down significantly...yet the business do have great profit/loss and Cashflow figures....
Its easy to see that eventually these companies will be rerated.....if the sales keep increasing and the profit increases...U want to know what the Kicker is..?
Picture this...
Increased profit...increased sales...increased Cashflow.......and start payin dividends...
This will get the markets attention....then the low liquidity will work to the current share holders favour....because low volumes will increase share price...expedencially...
Yeah..
Dont think the owners would sell......so its a medium term investment....certainly not as long as property....nor a short term as speccy.....but the possibility of sustainable increases....
Happy to be corrected...
Will buy on weakness..
Dyor
Andrew P, page-23
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