Brian Schieble's  Instablog

Brian Schieble
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Retail investor of eight years, fundamentally oriented, long mostly. Probably characterize my own investing style as aggressive value investing, concentration in a small number of stocks is not an issue in my thinking.
  • China Mobile - 2014 Slump Offers Great Potential 0 comments
    Mar 19, 2014 8:10 AM | about stocks: CHL

    CHL is in sort of a slump lately due to a rising competitive landscape and general China based weakness. But it's hard to ignore as an investment, very hard to ignore. It's owned by many of the top grade firms like Gotham Capital, albeit in smaller ownership stakes than would be assumed to manifest themselves for a high conviction pick. I believe that's going to change, in the next round of 13f filings I think we're going to see considerable pick up in the stakes of CHL by some of the brighter minds on Wall Street.

    The fact of the matter is CHL has minimal long term debt, a lot of cash, a leadership position in the market and is selling for under 10x forward projected earnings. Not many large caps have these characteristics. I'd assume a purchase in this current environment will appreciate at least 20% in the next two years and carries with it a 4.8% dividend yield.

    CHL is a suitable bond replacement stock, carrying less risk in my opinion than the 30-year T-Bond and paying more currently. I believe this slump as of late is an aberration and the price now entails minimal downside risk and is very compelling.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: CHL
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