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Even in this market, I keep buying. China Mobile (CHL) looks like a safe bargain to me October 31, 2008

Posted by deminvest in China Mobile, China stock, CHL, growth stock, Internet stocks, investment, Nasdaq stock, Single stocks, stock I own, stocks, stocks that pay high dividends.
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I bought 20 China mobile shares at  USD  50,09 each, spending a total amount of $ 1000,18 fom my October monthly investment.

China Mobile didn't find an agreement with Apple

China Mobile didn't sign an Agreement with Apple, but...

I chose  world’s largest mobile operator for my October $1000 investment because:

1. it is cheap with P/E = 11, Forward P/E 10,
2. it grows Quarterly Revenue Growth (yoy):17.90%  Quarterly Earnings Growth (yoy):44.70%
3. It is loaded with cash, $25 Billion, and no debts.
4. It gives out 3.5% dividend
5. More and more Chinese people are getting their first mobile phone

Comments»

1. Nurseb911 - November 1, 2008

There’s obviously a large untapped market of consumers in China and other emerging markets. Even if growth slows, the numbers still help to make many of these emerging consumer stocks a compelling investment.

I haven’t studied the stock in great detail, but with recent market volatility it might be one that an investor should start examining if they have a long-term investing outlook.

2. Simon - December 12, 2008

Very good investment idea! I have looked to this sector as well as a great way to tap into China’s growth:
What was your comparison with China Telecom over China Mobile?
The first is smaller,cheaper,larger dividend?
Just wondering your research into this, as I am leaning toward a purchase of China Telecom!
But would love any help to pick between the two!
Keep up thye awesome blog!
Any help would be greatly appreciated!

3. deminvest - December 14, 2008

Do you mean China Telecom Corp. Ltd. (CHA)?

It seems to me that its dividend Yield is 2.9%
http://finance.yahoo.com/q/ks?s=CHA

While CHL yields a little bit more: 3.1%
http://finance.yahoo.com/q/ks?s=CHL

China Telecom does mainly land lines. I looked at what is happening in Europe and the US:
land-line companies like Deutsche Telecom, France Telecom and others that can’t grow and are actually losing customers to cell phone companies. I read that this happens even more in China, where many new users go directly to cell phone. They don’t even bother buying a land line service.

Looking at CHA confirms my ideas: year on year revenue growth 0.8% only. Earnings year on year are even on the negative side: -8.2%

CHL is growing both revenues and earnings, as you can read in my post.


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