YangziJiang: -4.9% at $0.780 taking its fall since August to 46%, a level where mgt has started buying back shares. Fri, the company bought 1m shares at $0.89 and Mon bought 2m shares at $0.84. AmFraser, which has a Buy rating and $1.60 fair value, says it expects YZJ to continue to purchase shares, as it did during the 2008 depths (bought 228.2m shares between $0.27-$0.46).
Add that history is repeating itself right before our eyes as jittery investors sell off the stock 18% in the last one wk. Expectations of Rmb4b of profits have not changed. YZJ as a business has certainly not lost 18% of its intrinsic value in the last week alone. Considers YZJ's 2011F P/B at 1.2X a steal given its ROE of 30%, while 2011F div yield of 7.8% looks likely to rise as YZJ continues to buyback shares.
No comments:
Post a Comment