Management seems to be doing a good job operationally, if one believes the numbers. The problem is that they earned .84 cents a share last year, and the stock is selling for around .84 or 1x earnings.
They don't seem to want to do anything to improve this ridiculous PE.
You are right about that. Still, people will take profits, and this has gone up from 2 to 3.75 in a month. Very weird trading today. An amazing amount of sells at 2.70 and the price won't drop. Someone is picking them all up.
There have have two previous rocket like rises similar to the recent one, which seems to be still ongoing. On the two prior ones, the stock dropped just as sharply, and settled down at the 50% gain point. I'm thinking it's going to happen again, so I sold 50% of my stake in MY, hoping to buy back. If the drop back doesn't happen, it means it's a rolling ongoing profit taking because the momentum is just too strong. Then I'll have buy back sooner. Well see.
A pullback is coming, maybe this coming week. I'm tempted to sell some on Monday and buy back later in the week, although I feel that long term there is no reason to sell. The PE of the other wind companies are all twice or more of MY's PE. I think it's being discovered by the market as a company with a future, making money, not a China fraud, and with lots of momentum. Everything is on the up and up.
Equity increased during the quarter to 3,430 mRMB (shareholders' share) or 552.8 mUSD. This corresponds to about $ 4.52 per. share by approximately 124 million. outstanding shares. The cash position increased during the quarter from 1,679 to 2,170 mRMB mRMB or 349.7 mUSD, representing approximately $ 2.82 per. share. The debt (bank debt and bond debt) decreased simultaneously from 1,713 to 1,551 mRMB mUSD so Mingyang now actually debt-free with net cash of 619 mRMB, representing approximately $ 0.81 per. share.
And 1st quarter is going to be pretty good. No point selling at this point. There are only positives here.
What I heard was all good, especially that margins should improve next quarter, and sales and profitability will be all on the up and up in 2015. Anyone holding this will do well this coming year. I will add more.