Tuesday, April 10, 2012

Which China stock should I buy?

I think it's better to buy some for keeps now. China is cheap. Period.

This is a list of stocks I have narrowed down:

Stock
Price(HK$)
P/E
P/B
Technicals
Uptrend?
China Citic Bank
4.57
5.22
1
50% retracement
Yes
China Construction Bank
5.96
7.2
1.5
50% retracement
Yes
CNOOC
15.60
8
2.15
50% retracement
Yes
China Overseas Land
15.90
8.6
1.85
Little retracement

Yes
Dongfeng  Motors
13.90
9.2
2.1
50% retracement
Yes
Guangzhou R & F
10.10
5.5
1.17
Little retracement

Yes
Industrial & Commercial Bank
5.01
6.9
1.5
50% retracement
Yes
Yanlord
S$1.24  
8.15
0.82
50% retracement
Yes
(Source: Bloomberg)

All are on newly established uptrends since January, and most are sitting nicely on 50% support
(the golden number). In addition, all have attractive PE ratio of below 10 and one (Yanlord) even below its book value. So, what am I waiting for?

My choice candidate: Yanlord (it has the bonus appeal of having Peter Lim on board).

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