Even after lowered 1-year forecasts (by the way, 5 year forecast is unchanged) the PEG is at .53.
We have a Chinese company, expanding, with 1/4 of its total value in cash trading with a lowly PE of 18. You've got to be kidding. Do you think cancer treatment is a declining business guys? Do you understand cancer increases because of inorganic lifestyles. Have you been to China. They are cutting in front of each other to contract cancer in their future. Cell phones, pollution, car exhaust, HDTV's, and other low radiation consumer products are flooding the market. The average middle-class Chinese is doing very well for himself and seems insatiable in their appetite for western products.
I'm there right now. I'm asking them if they are happy, if they are pleased with the trends in China, pleased with the government etc. By and large the answer is Yes, Yes, and Yes. However there is no doubt that this type of lifestyle translates into higher cancer risk. Cancer will have a growth rate higher than inflation, and that's not taking into account how much demand will increase in a growing economy for life-saving, top of the line treatment.
This is a no brainer over the next 5 years. Hold. Be patient. But just hold. This is the Chinese stock to own. It will likely trounce its Chinese peers over the next 10-15 years.
The rationale for selling is a very week one. Hold.