Now that reports of China scams are rampant, whether true or not, companies like ABAT, and other decent companies in the China small cap space, find no buyers for their stocks. It seems that 5 PE is the new normal, and some of the other companies I own have 3 and 4 PEs. What is needed here for stock price appreciation? My take: show me the money. The only way to prove that a company is not a scam is to actually pay a dividend. Scams can't do that. ABAT can, since they are very profitable and don't seem to know what to do with their cash. A 2% or 3% dividend would send their share price where it belongs, say 10-15 times earnings. Any other takes on this?
Lots of things.
More interest in becoming a market leader, not an also-ran. Not forever a microcap.
Better communications with shareholders.
Some analyst coverage.
Better website, not one that looks neglected.
Dividend doesn't matter because the stock goes down ex-dividend in response to the drop in its cash.
I don't think that has any bearing on whether or not the company is a scam. Ponzi schemes pay "dividends" at first. The promise of big dividends is one of the signs the company IS a scam. It comforts me to know that ABAT has a big war chest relative to their liabilities.
I like everything I see about ABAT.
Would I bet the farm on them? Nope. But they ARE in my basket of "fliers" -- good-looking, still inexpensive stocks that I like to own in case they take off, as opposed to older companies that have been around a long time and pay good dividends.
I like a mix.
Not only attitude to Chinese companies, but to Chinese in general grows but worse and worse. To Philippians too. A neighbor of mine, Philippina, warning that never, never one should trust ANY Philippians. Some of them are o.k., but you never can tell, she says, and many are so hellishly bad that, to avoid trouble, one should stay away just from all of them. And from Chinese too. I learned this my own way… very-very hard way. None of my acquaintances invests in Chinese companies anymore.
Not a very clever remark. One Chinese is bad, so all Chinese must be bad ????????. One filipino is bad, or even says Filippinos are bad, so all are bad ???????. Only all white people are good ?????? Seems like you have missed the last 10 years of globalisation!!!
Anyone can reason like that. SO I happen to have 10 very honest Chinese friends and 3 very just Filippino friends (which happens to be true), so ALL Chinese and ALL Philipinos must be honest and just???. This should then disprove your claim.?
I believe that analysts have not much of an idea how to value the Electrical Vehicle aspect of the company, they can get their heads around the battery aspect for notebooks, miners lamps etc but my gut tells me they draw a blank on the new industry part. But fundamentals will win out, when the numbers are run a rapidly growing EPS will raise the green flag.