I am one of the senil investors.
Fundamentals of HNP are good. Position of HNP in China is excellent. Chinas Economy grows near fastest on world - for next many years. HNP is one of number one on China energy supply. Put your money on number one companies (W.Buffet). HNP is number one in one of the fastest growing markets. Soon - may be - HNP is biggest Energy supplier on world (> 50 GW installed power, > 20% increase per year). HNP earns money in China and is less depending on exports - would say it is less depending on world economy. Market cap is very low (7 billion USD) compared to other companies of same PE, PEG.
During last three month price target was incresed from 27 to approx. 31 USD. Means investor are very convident. Today it hit 24 USD. Good sign for forther increase.
I just watched this Youtube video on China urban growth.
As I was watching that video what kept going through my mind was: "You think these people will need additional electricity going forward?"
Good Lord! Clearly as the video indicates, the potential for electricity demand/sales is staggering.
Oscar believes that HNP share price has turned the corner. Time will tell, but I'm a shareholder for the long haul.
did you also read that there are more foreign students in China than anywhere else? We're losing out because of our strange disinclination these days to let students in the door, and it should come as no surprise that most engineers with graduate degrees weren't born here. It's a timing thing, it's not easy to trade it for quick profits, this is a stock to keep, which is why there are dividends.
I own a small amount of HNP. But am hesitant to add because too much debt, negative cash flow & unstable dividend. Long run you have to think about inflation, where rise in commodity price negatively impacts profit. How much, do we know about the management? Aren't there better opportunities out there?
I also own small amount of HOGS, BYDDF.PK, CHEUY.PK & GSH.
I still assume HNP is a solid and strong company.
Reasons pro HNP:
- very strong year over year growth in revenue
- very big or even number one in China
- compared to Europe or USA very big power produce (280 billion kWh 2010)
- energy all the time is required
- they are investing in solar and wind
- they (I guess) have a strong managemant with close connections to the covernment (very important in China)
- they have access to own coal reserves
Reasons contra HNP:
- decreasing ernings this year
- big dividend payment
- not free market regarding pricing of electricity. Same company with same power production located in USA or Europe would have at least 50% more revenue and much more ernings.
- how does China government decide about price per kWh? --> uncertainity is bad for investment.
I reduced my position in HNP by 50%. My recommandation: Hold
PS: Have a look on WATG and RINO. What is your opinion?
what do you mean, will those who bought in before what get compensated? There has always been a cap on electricity prices, just like here, but for awhile it was trading at a higher PE, and then came the crash and the government kept the price for electricity low, rather than letting it get higher, which was expected (but not promised). Didn't mean that short term profits were higher, there are no short term profits in energy. Think PG&E, it was a stock held by rich people who wanted dividends and a place to store money that wasn't a bank, or at least that's how it was when they had the monopoly, and it was the dividend and the stability that made it a blue chip stock and a valued 'property' in the game of Monopoly. Well, in China may as well be a monopoly, as long as the economy grows, there will be increased demand for power, and it's very unlikely to ever go down. The only question is how much they can charge.
If you got in when it was fifty-five bucks, then you've seen a big drop, and your timing was poor, but the company is as safe now as it was then, and in time it will go back up. Investors have a hard time with Chinese companies, cause of the politics, which is why the pe's are generally lower, and there is more volatility. What I mean by safe is the company isn't going to fold, not that you'll always be able to buy for what you paid. And they'll keep borrowing and investing, cause they have the engineers and the demand is there, and in time the profits will follow the investments. They purchase good deals with borrowed money, sounds smart to me.
Correction: The stock symbol where the Yahoo message board poster got arrested was UTSI not OVER.
Sorry. That was a typo I missed by not proof reading until after I hit the "Post Message" button.
HNP "Strong Buy"
dividend spelled divident = bozo
rating one's own post 5 stars = clown
obsessively complaining about the SH takeover and not buying HNP shares = idiot
Realize that the psychological profile of this guy is that of a stalker or even an obsessive compulsive pyro maniac. I would love to see the inside of this clown's house. Probably a complete mess. This guy is probably a loner, a hermit something like the unibomber in Montana.
I wonder if we will ever know the real truth about this idiot. I was on a Yahoo stock board a few years ago where some guy obsessively posted threats directed towards the employees and management of the stock/company the board represented. Let's just say the guy got arrested. The stock symbol was OVER. Look it up.
I think what perplexes me the most is why this clown wouldn't be interested in buying HNP if HNP made such a great buy on SH shares? How hard is this to figure out?
Anyway, sincere cheers to the longs of HNP from Oscar Shinn. As I read the tea leaves, when HNP starts to source their own coal to fire their power plants, our current 5% "dividend" should be boosted considerably. New highs for HNP? My guess is we see 57+ within 4 years.
The point is that HNP should never have been an "income" stock.
What stocks other than REITs and low-growers should pay dividents?
Can investors really count on some profit each year?
Who says so, annie?
Will former SH-holders ever be fairly compensated is THE QUESTION here!!!
i don't agree, I think the short term aspect of investors demands are a problem over time, and that investing in a stock that has steady growth and increasing demand is safe, if you get in at a decent price. This is a dividend stock, and investors can count on some profit each year, Looking at the fundamentals shows this stock to be upgrading existing plants, investing in foreign plants, investing in fuel, positioning to be a provider of green energy as well as the old fashioned kind, making progress in cleaner energy. But, we don't need to agree, you can invest as you see fit, and so can anyone else. Now that China is the no. 2 world economy, the steady growth has been shown.
rivery aka mme, after studying HNP's latest earnings-report?
No "fun" in the fundamentals for shareholders wouldn't you agree!
Debt? Divident? Dilution?
Surely you didn't mean shareholder-value did you!
Are the institutional investors really as very convident as you suggest?
Or is your post just a pumping & dumping con?
Which "fundamentals" are good, mme.meyer?
HNP's extremely weak Balance Sheet?
Huge negative cash-flow?
Are you Swiss? You made many spelling errors, not to mention grammar.
Speaking of Warren, a.k.a. Darth B, BRK-A never paid a cash dividend. Why?
He likely wouldn't invest in HNP either because he already has more than enough institutional stucks to be upset about in his present portfolio. (deliberate misspelling of stucks)