Highlights
From its IR web site
Video
CEO interview (cantos, free registrastion required, look for Syngenta).
Highlights
From its IR web site
Video
CEO interview (cantos, free registrastion required, look for Syngenta).
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).
I sold some Mindray stocks (MR) last Friday and today, and I bought some Syngenta (SYT), the European agriculture company. I think it is a more reasonably valued stock (compared to my across street neighbour Monsanto), in this ag (soft commodity) boom. The thing I want to make sure is it does not bust very soon.
The reasons why I sold Mindray:
1) Before and after it announced the acquisition of DataScope patient monitor business, the stock price dropped quite a bit (note this is quite normal in acquisition);
The following was done a while ago. Why I have not followed it in last two years, and missed this great agri boom? Because I followed all the hypes: Home Inns, Heelys and Crocs 🙁
==========
Dec. 14, 2005
Dear Mr. John,
Both Monsanto and Sygentia are leaders in the agriculture business. Their financial fundamentals are solid. Both are profitable and have an R&D expense of about 10% of their annual sales. Since we are long term investors, we will look at the following ratios for year 2004 at first.
PE ratio: Monsanto’s 36.4 is significantly higher than Sygentia’s 6.3, which means the investors are more optimistic about Monsanto’s earning growth. We need to examine the expected growth is organic or will be materialize.