Those that have listened to me talk about stocks will have heard me mention this stock at least once. I know! Many fund managers are selling out, Templeton is one of them. Many believe that this company is poorly managed, especially after their last quarterly financial announcement. Believe it or not! I am calling for a strong buy. I really love this company. Loads of cash, positive operating cashflow and 2nd largest abattoir in China. Why has this stock fallen from its lofty position to this lowly price? Once a darling on the STI index, it has fallen from grace and landed on earth...guess who is there to catch it? ME of course. SVI loves stocks which the world do not.
Ok I am not saying there is no risk, but while the world is watching COSCO, China Milk, Midas as possible dual listings, I believe PFOOD is going the be the leading candidate for a dual listing because of its high profile and ridiculous valuation. Another reason for liking this stock? You still need another reason!! Ok let me give it to you....RMB$1.4 billion in cash....RMB$611 million total liabilities. Superb. Every year cash from operations have been above RMB$300 million making it $60 million a year positive cashflow. That is just a very prudent amount I am assuming. Market cap is $711 million now. So positive cash from operations is almost 1/10 of market cap. What a great business!
Love it! Thats how I would describe this gem. Risks of course are high, but so are returns...This could be my meal ticket for next year!!
When pigs fly...So will I.
Best,
SVI
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