Price of Chinese agricultural play have fallen drastically. This stock have been on the watch list of many value investors. Is there a value proposition or is this a value trap?
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.
Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Insurance Start-up Havend. All opinions on Investment Moats are his own and does not represent the views of Providend.
You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.
His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.
You can read more about Kyith here.
- Have the World or Emerging Market Healthcare Stocks Outperform the World and EM Index? - November 26, 2023
- Retirement Spending Can Vary from 25% to 100%. Not your usual 2% to 3% a Year. - November 23, 2023
- If I Earn 10% Yearly On Average, and Inflation Averages 3% Yearly, I can Safely Spend 7% Yearly Right? - November 18, 2023
oterenceo
Tuesday 10th of January 2012
Now we all know the next catalyst for this stock will be what I wrote on the 21st of December 2011. You guys can enter back in and exit at around 0.935. hahaha...
oterenceo
Wednesday 21st of December 2011
2012...hahaha...
News Update China's government is proposing to eliminate its value-added tax on the distribution of vegetables in its latest effort to shield consumers from higher food prices.
A VAT of 17% applies to enterprises engaged in import-export, production, distribution or retailing activities.
Lifting the VAT on vegetables would lower the cost of production for wholesale retailers. Wholesale companies would benefit from the lower cost, but it's also generally a good policy for the business environment.
Overall agricultural prices pressures have eased in China as the country posted a record grain harvest this year.
Well, it is pork, rather than the veggies that caused the sharp inflation. Prices of pork has jump about 50+% compared to a year ago. We shall see how this news impacts CMZ.
oterenceo
Monday 19th of December 2011
China Minzhong is still falling like a dud and breaking new lows today (0.715). It's a falling knife. You'll get cut and you'll bleed if you attempt to catch this one.
Though many may argue that CMZ has value based on their earnings and has GIC backing, do take note that CMZ does not pay any dividends. So that makes CMZ a pure capital gains play.
Food prices are volatile and fickle. This is not a defensive stock! As the macro-environment gets worse people will get more and more risk averse. They will dump stocks like this one.
Drizzt
Tuesday 20th of December 2011
hi oterenceo, that is one of the reason i didnt get into Minzhong, i am not paid to wait. But we do see a trend whether agriculture will be important in the next few years (provided we get past the Mayan calendar end that is!)
AK71
Saturday 17th of December 2011
Hi Drizzt,
I remember Nick was vested in this. Don't know about now. Hope he would comment here. :)
oterenceo
Friday 16th of December 2011
Look at China MinZhong's peers and competitors. Most of them are listed in Hong Kong and are taking a hit from falling food prices.
Food prices are volatile and can be a politcally sensitive subject if it goes too high. The outlook isn't looking too good either. Volatility of food prices also mean lack of clear earnings visibility.
That plus all the bad repute of China Companies' bad corporate governance makes little wonder why this GIC invested company is falling like a dud.