The purpose of this website is to analyze the quantitatively cheapest 1% - 2% of common stocks on the planet as measured by price to value derived from basic elements of earning power and balance sheet position.
As a group, this portfolio is likely to outperform the market significantly. We will, however, evaluate each stock to determine investment value - with the aim of continually improving investment performance, and business analysis.
There is likely to be good cause for fear in each stock we analyze. We will seek to prioritize inherent stability as the key qualitative factor in our analysis. This could be trumped if the risk/reward equation is skewed in our favor (as it usually is with such cheap stocks, though not always).
We are aware of the multiple biases that creep into a selective approach and the pitfalls in investment performance to those who attempt this. In any case, we press forward towards the goal of superior analysis. We hope this exercise will also enlighten our readers.
Notes for acronyms used throughout this blog:
EBITDA: Earnings before interest, taxes, depreciation, and amortization - a proxy for cash earnings
Net current asset value/Net working capital value: Current assets minus ALL liabilities and non-controlling interests - a proxy for liquidation value
Net debt: Includes only interest-bearing borrowings
Net cash: Includes liquid marketable securities and funds
Free cash flow: Cash generated from Operations minus Cash used for Investing i.e. cash flow for financiers (debt and stock holders)
TTM: Trailing twelve months
FY: Financial year
$: Currency units pertain to the country where the company is primarily listed, unless stated otherwise. For e.g. $ represents US$ for a US-listed stock and HK$ for a Hong Kong-listed stock.
(Disclosure: We own/owned positions in all the securities discussed - and disposed some of them as a result of our analysis. We may also dispose others on a rise in the price and/or deterioration in the value of the securities - depending on our assessment of the prospective price/value equation, which may not be updated on this website. None of this constitutes investment advice - the readers are fully responsible for their actions.)
P.S. If you like the analysis on this website, and are interested in our portfolio management services, please contact us by e-mail via the profile link on the top left. Thank you for your visit.
Performance of recommended stocks as on June 2nd, 2021:
| Company | | Market Cap when published (in millions of currency units) | Price/share when published | Current market price | % change |
| Dutech | | 89.00 | 0.250 | 0.400 | 60.0% |
| IJTT | | 21,034.00 | 451.000 | 743.000 | 64.7% |
| Geostr | | 9,980.00 | 319.000 | 357.000 | 11.9% |
| Trinity Ind | | 11,300.00 | 690.000 | 850.000 | 23.2% |
| Mori-Gumi | | 9,700.00 | 295.000 | 306.000 | 3.7% |
| Tobishima | | 20,500.00 | 1,068.000 | 1,065.000 | -0.3% |
| Pegasus Sewing | | 8,700.00 | 350.000 | 509.000 | 45.4% |
| Nippon Gear | | 4,200.00 | 299.000 | 335.000 | 12.0% |
| Yurtec | | 58,700.00 | 821.000 | 735.000 | -10.5% |
| Takamatsu Machinery | | 7,300.00 | 674.000 | 708.000 | 5.0% |
| Sanko | | 4,300.00 | 475.000 | 504.000 | 6.1% |
| Sanko Techno | | 7,300.00 | 899.000 | 920.000 | 2.3% |
| Fukuvi Chemical | | 10,200.00 | 501.000 | 534.000 | 6.6% |
| Sata Construction | | 6,800.00 | 440.000 | 481.000 | 9.3% |
| Tokyo Energy | | 31,000.00 | 907.000 | 1,000.000 | 10.3% |
| Toso | | 4,400.00 | 495.000 | 553.000 | 11.7% |
| Imasen Electric | | 15,500.00 | 746.000 | 698.000 | -6.4% |
| Sun-wa Technos | | 15,300.00 | 971.000 | 1,218.000 | 25.4% |
| Yotai Refractories | | 18,500.00 | 848.000 | 1,189.000 | 40.2% |
| Tigers Polymer | | 7,800.00 | 389.000 | 449.000 | 15.4% |
| Nakayama Steel | | 20,400.00 | 376.000 | 434.000 | 15.4% |
| Techno Ryowa | | 19,600.00 | 900.000 | 898.000 | -0.2% |
| Shinnihon | | 48,400.00 | 828.000 | 853.000 | 3.0% |
| Mitachi | | 4,800.00 | 609.000 | 645.000 | 5.9% |
| Daisue | | 9,200.00 | 871.000 | 1,017.000 | 16.8% |
| Dynam Japan | | 6,000.00 | 7.940 | 7.000 | -11.8% |
| APT Satellite | | 1,700.00 | 1.830 | 2.870 | 56.8% |
| Cinda International Holdings | | 244.00 | 0.380 | 0.510 | 34.2% |
| Thelloy | | 152.00 | 0.190 | 0.220 | 15.8% |
| A Plus | | 174.00 | 0.390 | 0.395 | 1.3% |
| CCID | | 280.00 | 0.390 | 0.500 | 28.2% |
| Perfect Group | | 328.00 | 0.245 | 0.325 | 32.7% |
| Tang Palace | | 860.00 | 0.800 | 0.900 | 12.5% |
| Brilliant Circle | | 540.00 | 0.345 | 0.520 | 50.7% |
| Goldlion | | 1,500.00 | 1.550 | 1.800 | 16.1% |
| Dongyue | | 8,800.00 | 4.210 | 6.100 | 44.9% |
| Sam Woo | | 170.00 | 0.106 | 0.114 | 7.5% |
| Fufeng | | 7,600.00 | 2.950 | 2.570 | -12.9% |
| Consun Pharmaceutical | | 2,600.00 | 3.120 | 5.750 | 84.3% |
| Dawnrays Pharmaceutical | | 1,680.00 | 1.080 | 1.810 | 67.6% |
| Design Capital | | 218.00 | 0.103 | 0.171 | 66.0% |
| Asia Standard | | 995.00 | 0.197 | 0.238 | 20.8% |
| Ming Fai | | 531.00 | 0.730 | 0.680 | -6.8% |
| Luks | | 638.00 | 1.270 | 1.320 | 3.9% |
| Weiqiao | | 2,100.00 | 1.770 | 2.080 | 17.5% |
| Chinney Alliance | | 550.00 | 0.910 | 1.150 | 26.4% |
| Jiashili | | 627.00 | 1.510 | 1.790 | 18.5% |
| Henan Jinma | | 1,600.00 | 2.970 | 3.460 | 16.5% |
| Kinetic Mines | | 3,000.00 | 0.355 | 0.530 | 49.3% |
| Tian Chang | | 214.00 | 0.325 | 0.430 | 32.3% |
| China Bluechemical | | 5,600.00 | 1.210 | 2.390 | 97.5% |
| West China | | 6,600.00 | 1.300 | 1.240 | -4.6% |
| Tianyun | | 926.00 | 0.940 | 1.780 | 89.4% |
| Ka Shui | | 483.00 | 0.540 | 0.670 | 24.1% |
| Come Sure | | 200.00 | 0.580 | 0.650 | 12.1% |
| Lonking | | 9,200.00 | 2.140 | 2.710 | 26.6% |
| Lion Rock | | 531.00 | 0.690 | 0.880 | 27.5% |
| Sanbase | | 92.00 | 0.460 | 0.455 | -1.1% |
| China Starch | | 755.00 | 0.126 | 0.180 | 42.9% |
| Chinney Kin Wing | | 263.00 | 0.175 | 0.220 | 25.7% |
| Shenguan | | 824.00 | 0.242 | 0.425 | 75.6% |
| North Asia Strategic Holdings | | 172.00 | 0.630 | 0.750 | 19.0% |
| China Uptown | | 163.00 | 0.640 | 0.750 | 17.2% |
| AB Builders | | 138.00 | 0.230 | 0.226 | -1.7% |
| Sitoy | | 375.00 | 0.385 | 0.610 | 58.4% |
| Wuxi Sunlit | | 106.00 | 0.830 | 1.150 | 38.6% |
| Goldpac | | 1,200.00 | 1.440 | 1.960 | 36.1% |
| Fountain Set | | 1,200.00 | 0.930 | 1.430 | 53.8% |
| GDH Guangnan | | 608.00 | 0.670 | 0.730 | 9.0% |
| Rivera | | 965.00 | 0.380 | 0.620 | 63.2% |
| Sinopec Engineering | | 14,000.00 | 3.080 | 5.060 | 64.3% |
| Shineroad | | 260.00 | 0.385 | 0.395 | 2.6% |
| Sun Hing | | 260.00 | 0.540 | 0.650 | 20.4% |
| HM International | | 21.00 | 0.050 | 0.095 | 90.0% |
| Changshouhua | | 2,400.00 | 4.190 | 4.190 | 0.0% |
| MS Group | | 118.00 | 0.590 | 0.670 | 13.6% |
| Sinomedia | | 428.00 | 0.900 | 1.120 | 24.4% |
| Wong's Kong King | | 394.00 | 0.540 | 0.890 | 64.8% |
| IPE | | 747.00 | 0.740 | 0.700 | -5.4% |
| 361 Degrees | | 2,100.00 | 0.990 | 3.500 | 253.5% |
| Wecon | | 132.00 | 0.165 | 0.242 | 46.7% |
| Hopefluent | | 1,000.00 | 1.560 | 3.700 | 137.2% |
| Trio Industrial | | 165.00 | 0.165 | 0.239 | 44.8% |
| G&M | | 133.00 | 0.133 | 0.170 | 27.8% |
| HPC | | 125.00 | 0.080 | 0.090 | 12.5% |
| Hingtex | | 118.00 | 0.165 | 0.185 | 12.1% |
| PDL | | 368.00 | 3.180 | 9.540 | 200.0% |
| Steel Dynamics | | 4,660.00 | 22.520 | 63.700 | 182.9% |
| Waddell and Reed | | 922.00 | 14.750 | 25.000 | 69.5% |
| GAMCO | | 320.00 | 11.660 | 24.750 | 112.3% |
| Warrior Met Coal | | 747.00 | 14.080 | 18.870 | 34.0% |
| Flexsteel | | 66.00 | 9.100 | 47.145 | 418.1% |
| Hennessy Advisors | | 60.00 | 8.000 | 9.040 | 13.0% |
| Alliance Resource Partners | | 461.00 | 3.500 | 6.170 | 76.3% |
| Ciner Resources | | 225.00 | 11.380 | 12.750 | 12.0% |
| RMR Group | | 512.00 | 30.000 | 39.640 | 32.1% |
| Consol Coal Resources | | 138.00 | 5.080 | 16.125 | 217.4% |
| Hollysys Automation | | 867.00 | 13.760 | 13.070 | -5.0% |
| Ever-Glory | | 11.00 | 0.760 | 2.228 | 193.2% |
| Mammoth Energy | | 36.00 | 0.810 | 4.030 | 397.5% |
| Natural Health | | 41.00 | 4.110 | 7.350 | 78.8% |
| Seplat Petroleum | | 300.00 | 49.500 | 93.600 | 89.1% |
| Ferrexpo | | 780.00 | 142.700 | 460.400 | 222.6% |
| Indivior | | 325.00 | 44.440 | 156.000 | 251.0% |
| Costain | | 37.00 | 35.000 | 58.300 | 66.6% |
| Plus500 | | 1,200.00 | 1,108.000 | 1,499.500 | 35.3% |
| Regal Petroleum | | 49.00 | 15.300 | 21.000 | 37.3% |
| Trans-Siberian | | 53.60 | 60.500 | 115.500 | 90.9% |
| Titon | | 8.00 | 84.000 | 130.000 | 54.8% |
| Reach | | 300.00 | 97.000 | 237.000 | 144.3% |
| Abbey | | 278.00 | 11.500 | 15.750 | 37.0% |
| | | | | |
| Average profit | | | | | 50.7% |
| August 28th 2020 | S&P 500 | | 3,508.01 | 4,208.12 | 20.0% |
| August 28th 2020 | EFA | | 65.48 | 81.39 | 24.3% |
| | | | | |
| Stocks - before May 16th | | | | | 122.4% |
| April 9th 2020 | S&P 500 | | 2,789.82 | 4,208.12 | 50.8% |
| April 9th 2020 | EFA | | 55.57 | 81.39 | 46.5% |
| | | | | |
| Stocks - after September 28th | | | | | 29.9% |
| November 27th 2020 | S&P 500 | | 3,638.35 | 4,208.12 | 15.7% |
| November 27th 2020 | EFA | | 71.71 | 81.39 | 13.5% |
Note: Some of the stocks were acquired or spun-off into multiple stocks - we have taken the acquisition price or aggregate market value of spun-off stocks as the current market price.