Stock price of CYD has absolutely nothing to do with earnings or fundamentals. If it did then we would be trading around $50. If investors haven't figured out Alex Potter and his bloody estimates and gaming target prices by now then god help you.
nmauricer1... you're right. potter always seems disinterested in this stock. it's like he's forced to cover it. at this time only value players like this stock. the herd likes to chase the hot ipo market. china is exploding with ipos between now and the end of the year. that sucks up liquidity. cyd reversed course with the alibaba ipo back in September. usually an ipo like that signals the top in a market. but our dear federal reserve keeps pumping stocks. wish they would tell their traders to buy some cyd :)
lo23ilk... don't know when he changed his tp. I just noticed it. potter is an odd duck. I haven't a clue how he determines his valuation on this stock. since on the 3Q conference call Heatland pounded the table that the stock is undervalued. shah says it's undervalued. everyone knows it's undervalued. potter's carrying the water for someone. weird.
he must think Q4 eps will be dismal. but then he's been so wrong on his estimates. which leads one to believe that it's not about earnings or product or market share or china. it's about squeezing HLA. sad.
"China Yuchai International Ltd. says trucks equipped with its YC6K12 diesel and YC6K13N liquefied natural gas (LNG) engines have won first place in their respective categories at the China International Truck Fuel Economy Competition in Beijing.
According to China Yuchai, the YC6K13N engine has the highest torque power among similar-sized gas engines. By utilizing lean-burn technology, it reduces average energy consumption by 25% compared with a diesel engine of comparable size and power. This 13-liter engine uses 0.8 kg/ton of fuel per 100 kilometers and is compliant with Euro V emission standards.
The YC6K12 diesel engine applies high-reliability technology to enhance the engine's dependability and uses technologies such as more accurate combustion and electronic control, as well as high-strength materials and a high-efficiency engine cooling system, which substantially extends the engine's useful life. It is an advanced 12-liter engine compliant with Euro V and VI emission standards."
and I say, this is a classic value stock that should be trading at $50. This company has been around for more than half a century. It's not going away. It has its eye on the future and is adapting smartly and continues to be profitable. Big Boys want to pounce on it. But they are followers not leaders. We just need someone to lead the charge. Who will that be.........
here's the article from the yuchai website. my post giving you the website address won't take.
Yuchai Machinery explores optimal path for achieving strategic objectives
Yuchai Group 2014-11-10 08:52
"What are Yuchai's advantages, disadvantages, opportunities and threats in achieving its strategic objectives?" "What strategy will Yuchai take to better achieve its strategic objectives?" "What is Yuchai's core competitiveness?" "What battles must Yuchai win in 2015?" "What key performance indicators must the senior management fulfill in regard to the key tasks in 2015?" From November 1 to 3, members of the leading body of Yuchai Machinery Co., Ltd. (Yuchai Machinery) and some middle-level managers discussed these issues, and deciphered Yuchai Machinery's strategic objectives in the coming five years, to explore the optimal path for achieving the objectives.
In the form of group discussion, the seminar focused on the performance management program advanced to achieve the strategic objectives. According to the source, the program launched this September is aimed to clarify the relations between the company's organizational strategy, annual policies and objectives, annual business plan and annual KPI, as well as the logical decomposition system, perfect the existing performance assessment indicator system, and establish the performance assessment indicator system specific to section-level organizations and cadres; to establish and perfect the mechanism of performance management of senior and middle-level cadres, departments, sections and grass-roots level cadres; and to establish the model of performance results application to apply performance assessment results in fields such as salary distribution, incentive, staff career, cadre promotion and demotion, and training.
11-10-14 (source: Yuchai website) Yan Ping, chairman of Yuchai Machinery, delivered a speech at the seminar. He noted that the accomplishment of Yuchai Machinery's strategic objectives concerns the development of Yuchai Group, thus the company will spend three years reengineering its system from this year on, and push forward corporate reform systematically, conceptually and institutionally so as to continuously enhance its core competitiveness. "These are fundamental preparations for the 'second startup'." The clarification and deciphering of the corporate strategic objectives is an important beginning of Yuchai Machinery's system reengineering."
indigestion was to be expected. those who didn't get their dividend or expect HLA to melt are moving on. we investors can be crybabies when we don't get what we want (especially americans). putting aside the lack of additional dividend on top of the $1.20 we got in May or more buyback... this company is still going to beat last year's earnings and revenue. natural gas and marine engines are doing very well. mrmenorah gave a very rational and realistic observation. I have no idea why he thinks I'm a guy when I act like such a girl on this board :) and tuckerl1985 has a valid point on buybacks but HLA will do it when it benefits them not us. Still think next year is the year we kick butt. Cheers to us diehards!
but shah added a nice chunk to his sizeable position in Q3. why would he do that if he isn't hearing what he wants? heartland fired a shot across HLAs bow. it rattled them. jaarc is probably accumulating at this price.
it was more like they were slapped and were surprised by it and stumbled. It wasn't like this question hasn't been asked before. but their reaction was stunning and very revealing. did HLA say we let the markets determine stock price? Good grief. where have they been the last six years. the market hasn't been about fundamentals for a long time, much to my dismay. the market is voting no confidence today with low volume and sinking price. the stock price has nothing to do with the quality of the products or earnings, it has everything to do with the quality of the management. I've always given HLA the benefit of the doubt because they've been hard to read. but today they let the mask slip and it wasn't pretty. big mistake for them.
and marine engines good and going forward gooder. but as jaarc has pounded the table... big boys want HLA to unlock value of stock so it can rise to what it's worth. this stock is a coiled spring.
no word on dividend except they have too much cash on hand. the big boys want to unlock the value but HLA holds the key... but for how much longer?
we are not flashy. we just plod along and collect our annual dividend then a lot of players move on. stock should be trading at $50. but we got no mo mo. the conference calls lull us to sleep. HLA tends to dampen expectations rather than pound the table. perhaps they'll give a smidgen of optimistic guidance on Tuesday. Alex would like that.