MMMPARSLEY1

Tongjitang Chinese Medicines: Finding Value in China

Tongjitang has over 110 million in cash. 797.x Yuan.

Investors Vote 'No Confidence' in TCM's Management

So investors are afraid of TCM when only 5.1% of their significant cash reserves are being aggresively invested? Since when did aggressively investing 5% of cash assets become dangerous?

It seems that TCM has demonstrated that they understand value propositions as well as the analysts whining about their recklessness. I believe that to be the case by simply seeing how they have increased value within their own company. I'd imagine that having access to industry trends by monitoring their own business environment, they will be in an enviable position to know when to pull out their speculative plays.

What doesn't make sense to me is why a company would tank 30% when a meager 1.6% of its total value (5M out 300M) MAY be subject to losses.

From my experience chatting in Asia with the investment class, intelligent Chinese are proving themselves to be very intelligent evaluators of markets.

Regarding confidence in Tonjitang management, there is still no good argument that a company with 20% revenue growth (and potentially much higher) should be trading at 6x Enterprise Value/Earnings and an under .5 PEG ratio. (at least I haven't heard an argument which merits the current valuation).

Investors Vote 'No Confidence' in TCM's Management

So investors are afraid of TCM when only 5.1% of their significant cash reserves are being aggresively invested? Since when did aggressively investing 5% of cash assets become dangerous?

It seems that TCM has demonstrated that they understand value propositions as well as the analysts whining about their recklessness. I believe that to be the case by simply seeing how they have increased value within their own company. I'd imagine that having access to industry trends by monitoring their own business environment, they will be in an enviable position to know when to pull out their speculative plays.

What doesn't make sense to me is why a company would tank 30% when a meager 1.6% of its total value (5M out 300M) MAY be subject to losses.

From my experience chatting in Asia with the investment class, intelligent Chinese are proving themselves to be very intelligent evaluators of markets.

Regarding confidence in Tonjitang management, there is still no good argument that a company with 20% revenue growth (and potentially much higher) should be trading at 6x Enterprise Value/Earnings and an under .5 PEG ratio. (at least I haven't heard an argument which merits the current valuation).