guangshen railways, gsh, par value: us$6.04. Book value: around us$14.00. 1997 profit: us$1.15. If we use dow jones average pe ration to calculate gsh. Which is around 20 x. Gsh should be over us$20.00 or more. It supposed to be that way. Because market price is usually over book value and par value. Think about it. What a bargain.
You should not use a PE of 20 to apply to GSH. Use the average PE for US railroad stocks which is more like 10-12. A PE multiple of 20 assumes that earnings per share will grow 20% a year three years out. I am not sure that is the case.
Pacman, thanks for your e mail to me concerning your article for Trains. I am going back to China in April to do some railroad development work and would like to meet with GSH management. I see where you got to talk to them on your recent trip. e mail me with your advice on how to get in to see them. Will I need an interpreter or do the key people speek English.