THE RATIONAL INVESTOR

Stocks are simple. All you do is buy shares in a great business for less than the business is intrinsically worth, with management of the highest integrity and ability. Then you own those shares forever. I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.

February 25, 2007

904.HK reasonable price

market cap: 48.1 y (price: 6.01)
earning: 141 million
06 annual earning project: 141 + 141 * 1.2 = 310.2 million PE/G = 4810/310.2 = 15.5

cash and equivalent: 800m. actual PE = 4010/310.2 = 12.9

so it still a little under reasonable price range. Strategy: if it drops buy more.

THE RATIONAL INVESTOR

February 25, 2007

904.HK reasonable price

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