excuse me....P/E at 3 is expensive ??? this stock, if it was...

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DONACO88

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15/09/17

13:04

Post #: 27245190
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Originally posted by Meowau ↑

Was interested in this at 8-9 cent range but p/e of 3 was too expensive (for a Chinese share). Now I am interested at $.05.

The pile of cash is really not available to either use or distribute as dividends. Chinese law requires that guarantor companies like dxf have a certain reserve ratio to the amount of capital guaranteed. From memory, it was $1 capital per $10 of guarantees. Either way dxf are near their limit. They need to continuing growing their capital assets if they want to increase their guarantee book.

A large problem with the share prices is the lack of free float available. The original Chinese shareholders own 99% of the shares. I can't recall any changes to this list from the time of IPO until now.

That said, I am fairly happy not to own this right now, even at $.05. This suspension is not good. This is highly unusual to not have your earnings report sorted on time. My gut also says there is not anything to be worried about here. But Australian investors do not take kindly to this sort of thing. I'd be worried too if I owned it. I would not be surprised by a father fall in price. Yes, the Chinese own 99%. But the only people actually influencing the price are the Australians.

Very curious to see the next earnings report. Last year's annual report was a 50% increase in profits. Agree sentiment on Chinese shares will turn eventually. Many are starting to send out hefty dividend checks now... and these will not be ignored forever, especially when combined with absurdly low p/e's and growth of profits for many.

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excuse me....P/E at 3 is expensive ???

this stock, if it was trade on a chinese exchange would be at P/E 10 or more. if it was an Australian company, it would trade at P/E 15.

current P/E at less than 2 is dirt cheap.

DXF Price at posting: 5.0¢ Sentiment: Buy Disclosure: Held
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excuse me....P/E at 3 is expensive ??? this stock, if it was...

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