Monday, October 13, 2008

It's Mr YangjiJiang. How Do You Do?



Let's look at Mr YangJiJiang shall we? Let's see if its at the risk of becoming like Sir Ferrochina. ( SGDividends will be using Sir Ferrochina as the benchmark.). So why are we doing this? Cos we are now looking at stocks to put on our radar screen and since we are analysing, why not share it to the world. Fact Facts Facts..thats what SGdividends hanker after...not fluff.


OK. Looking at the above. This company is seems pretty safe in terms of repaying its liabilities. Current Assets: RMB1612,183 VS Current Liabilities: RMB504,321. What's lovely is that it has Cash and its equivalent of RMB852,374. What this means is....it can repay debts which are due within a year easily as it has CURRENT ASSETS more than its CURRENT LIABILITIES. ( Im looking at the 2nd column of the charts above from the right , in case you are looking somewhere else.) In fact using their CASH is enough to pay their CURRENT LIABILITIES already.


Now lets Compare with Sir Ferrochina, shall we? ( This was released when analysts were still issuing buy calls..Lelong ah..they think what..durians ah)





Current Assets : 11,530 VS Current Liabilities 116,790 ( 2nd column from right) See how much they have to repay at the third chart!

Compare and contrast Mr YangJiJiang and Sir Ferrochina....Your Guess is as Good as mine !(The above are the latest financial statements available at this point of time publicly, btw.)

Investing Tip: At such times like this, look at debts of the company..seriously..share value fall never mind...but as long as they dont disappear ...games not over. Take care of the downside!


Important: The objective of the articles in this blog is to set you thinking about the company before you invest your hard-earned money. Do not invest solely based on this article. Unlike House or Instituitional Analysts who have to maintain relations with corporations due to investment banking relations, generating commissions,e.t.c, SGDividends say things as it is, factually. Unlike Analyst who have to be "uptight" and "cheem", we make it simplified and cheapskate. -The Vigilante Investor, SGDividends Team

3 comments:

  1. thought YZJ look good on book, the overall sector future somehow bleak, considering Cosco with customer went bankrupt, orders cancelation, demand shrinked for coming yr....I m jus very cautious on shipping, esspecially when recession is looming...

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  2. Hi Alonso,

    Thanks for reading and posting! :)

    Shipping, in fact, nearly all kind of transportation stocks are pretty cyclical in nature. Definitely. no near term upside catalyst in the near term. However, cyclical stocks make the most money when during upswing as they lose the most money during down swing.

    That said..it is definitely not the time to enter such industries at the moment....cautious..yeah! Our 2 cent's worth.

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  3. No including SMRT, SMStransit..just to be clear...

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