China Mobile, Syngenta update

In last two days China Mobile (NYSE:CHL) and Syngenta (NYSE:SYT) released its Q1 results (Bloomberg: CHL result, SYT result). Both are doing very well lately. Today CHL got an upgrade from Zacks. But let’s not got too excited on the stocks, as a general rule. Also keep in mind sometimes we could use the analyst upgrade or downgrade as an opposite indicator (market sentiment).

Remember a company’s fundamental does not change before and after an analyst wrote a report.

China Mobile’s strength or new growth mainly comes from the rural areas, and data/internet plan in urban areas. While I apploud its management’s forward looking strategy, I am not sure how long this momentum can sustain. Note CHL trades at a much higher price compared to other mobile operators, and it is the No. 1 carrier in the world according to market cap. Here is another interesting Chinese article about China Mobile (from Caijing).

Syngenta is a company I am not very familar, I bought it because I thought the soft commodity boom is real, and SYT is the cheapest among the big agri/seeds/crop protection companies, Monsanto is more expensive and volatile, even considering its growth. I remember a few years ago Europe had strong opposition against Monsanto’s genetic modified seeds, don’t know if this has been changed? A second reason, is I found European companies usually have a more conservative/repsonsible management, they look at things more in long term compared to some US companies (they care more about their own stock options).

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