This week I have made some moves in the market mainly I have opened 3 new positions the first one in $FDX (FedEx Corporation) of which I made a separate post talking about this company and my reasons to watch it close it or go buy it.
The other two are from the $HKG50 index one is $0688.HK (China Overseas Land & Investment) The company's sector is Real Estate and in many parts of the globe but mainly in Asia in mainland China, the company has been growing quite normal averaging between 2013 and 2020 a price per share of $25 the company has a strong balance sheet a PE ratio of only 4.23 where normal for the sector is much more therefore an undervaluation of over $50 per share which represents almost 200% of the price the company has right now, of course I don't think the company will reach record highs at any point nor will it go all the way to fair value but it will not defenitively stay at these lows of less than $20. Also keep in mind that real estate is very good versus inflation for numerous reasons.
The second investment is $00966.HK (China Taiping Insurance Holdin) , a financial services company with a low PE ratio and a strong balance sheet, if we compare this Chinese insurance company with others in the US, for example FNF or AFG, we can see that they are on the same path until this year, where the American ones are still going up and the Chinese ones are going down, partly due to all the turmoil of the Chinese legislation, and I think this company will eventually catch up with its US peers.
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