I am looking into china vtm lately. It had fallen a lot recently and is unjustified...... it PE is about 3.5, dividend is 5-6% with gross marigin more than 50%. It is well managed and most if not all analyst reports is a buy call...... Do take a look......iron ore prices is falling but not so much where china vtm businesses are which is in Sichuan which grow at a pace twice the gdp of china...... But China vtm still maintain a high marigin....imagine when iron ore price is up.......
Reuters reported on Friday: "Prices of shares and steel futures contracts jumped on the plans to build highways, ports and airport runways, which are among the most ambitious unveiled in China this year."
Will Sapphire Corp benefit too from the infrastructure projects in China?I believe so, based on a business description that "ots subsidiaries manufacture steel and vanadium products, mainly hot rolled coil (HRC), & vanadium pentoxide (V2O5)."
Sapphire owns 9.2% of China VTM listed in HK > China VTM now is the subject of a privatisation > What is the impact on Sapphire? Positive...how positive?
I do not think that they are able to privatise china vtm at HK$1.72 since some acquire the stocks at much higher price. Well managed company but depend on price on iron ore.....which if you think the leader transition next year march is going to announce more measures to boost economy, china vtm share price will be worth much more....
Sapphire is a play on the Chinese steel sector. I think in recent mths there has been a sharp rebound in prices but Sapphire didn't move. It's dead on the water because it is not a major stock.
Chinaâs steel industry PMI has showed a small contraction in November to 49.2 (from 52.7 in October).
Inventories are low and analysts are slowly upgrading the sector. Anyone lookng for an attractive re-entry opportunity @ current 11.1 cts?
