Towards the end of last week Mobius came out with a brief commentary on China and these are the two quotes that I feel are most important, the link to the full commentary is below…

  • “It’s important to remember that China’s economy is a planned economy, something that I think has been overlooked by many people when they ponder the possibility of bank failures, overleverage and other worst-case economic scenarios. At the end of the day, the Communist party (the state) is determining the direction of the economy and, in our view, has the wherewithal to take measures it feels are needed to further its goals.”
  • “Volatility is increasing in many markets and it’s something investors will likely need to learn to live with. We view periods of heightened volatility with the lens of potential investment opportunities—allowing us to pick up shares we feel have been unduly punished”

Source: Franklin Templeton

  1. I like the advice to continue to look at turbulent times as an opportunity. I’m averaging down on BJCHI. They will come in with very decent improvement in earnings for fiscal 2015, no debt, lots of cash. So dividend cover is very solid. JIMHO.

      • Yes, I read that after posting. Positive sign. Usual interpretation is that management ( who are the majority owners, here) judge that the stock is undervalued. Since the company is cash rich ( I assume, from previous financials), the buy-back will generate positive returns. If anyone is seriously invested in BJCHI, as I am, do we have any forecasts for the F2015 dividend declaration? My estimate is 0.28 baht, which would provide a pre-tax return of 4.8%. The stock div in 2015 – I don’t know but it seemed to take the wind out of the stock price. All other things being equal, the buy- back will marginally improve EPS for F2016

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.