Discussion in 'The Economy' started by Tropo, 28th Nov, 2012.
The Miracle Of China
Ahh Tropo is seems to be the same story as with Qantas 6 months ago:
And as suspected has been trending back up for no other reason than they were oversold given their underlying assets.
I actually think some Chinese stocks are looking quite cheap right now. I have been sizing up a Chinese manufacturing company which exports a lot of a certain product as well as serves its domestic market and has a PE below 10, a share price that is only 30% of what it was 5 years ago inspite of its growing sales in that time...
The buying is always good when the people are scared.
That said, I'm not saying China is without risk even at these levels or that they can't fall further, but for me the risk reward is starting to look quite attractive regardless of the future turmoil.
For me the elephant in the room regarding China, is Japan, another former manufacturing powerhouse, of which China stole a lot of its thunder, and I fear that with 10 years of QE under its belt, and government debts that are now just getting outrageous with not prospects of a shrinking budget deficit I can't help but feel the balloon won't be able to avoid the market pin for another 24 months which could see the yen fall to levels not seen for decades...
And it will be quite interesting to see what that shake up does for the world manufacturing base, ie will it reinvigorate the Japanese export engine, and will a relatively appreciating yuan see the Chinese begin to turn their focus to consumption, will it just start a trade war or worse an actual war...
There are definitely some uncertainties out there...
Current QAN chart is telling me that there is not much difference (approx 20c) in relation to the price action 6 months ago.
Hmmm...how "cheap" is cheap ??
I could not care less about Chinese pink elephant, PE, CIA, KGB, Japanese budget deficit, etc...it's a pure speculation in my opinion.
The only thing that matters - price action !!
So - question is, are you buying, drinking or dancing
19 Crazy Things That Only Happen In China
Crazy Things Happening In China - Business Insider
Separate names with a comma.