Marty Whitman's Value Picks
I'm intrigued by the ADR Henderson Land Development. It has extensive commercial and residential properties in HK and mainland China. It is trading at a deep discount to NAV (as Whitman suggests....> 50% discount on shares as they currently trade) and only has a D:E ratio of 0.15. Read the latest annual report presentation here.
I need to delve into this company's financial reports much more extensively before taking the plunge; however, if the LONG term growth story for China is intact and one believes in investing in hard assets then buying a company like this at bargain basement prices is compelling.
Note dividend yield is 2.7%. IMHO this would be a very long term investment >3 years +. Real estate is illiquid and one needs to be patient to allow the market to recognize hidden value.
Also: you may be confused by the currency denominations. 1 US dollar = about 8 HK dollars (7.7 today)
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment