FWLT - I have to laugh seeing these guys. They have been a Cramer Fav for a long time. Up 10% today (perhaps not still on list?) they have dropped 50% from their 52 week high. They are buying back stock, they have a huge backlog and a ton of cash. The problem? They do a lot of their construction in Oil & Gas industry. The drop in price of oil has scared off investors. I'd like to think that people planning projects of $100m+ are thinking beyond the wild fluctuations of oil caused by speculators in their LT planning.
KBR - this is a relatively recent spin-off from HAL and is like a chapter from JG 1st book which talks about how buying a spin-off from a larger company has potential for nice future returns. KBR was also up 9% today and is pretty much FWLT, 2nd verse. Under $20 from a 52 week high of $45, they have a solid balance sheet, do heavy construction and have a good backlog of about $12b.
KHD - I am thinking about buying these guys. Like KBR, they are at $22, down from $45. KHD is a Hong Kong company and rather than being straight up construction, they supply equipment and supplies (like cement) to construction companies. They have a focus on Asia and Eastern Europe. The mazing thing is they have almost $15 per share in cashola. Then backlog has almost doubled in past year to 1.3b.
PCR - another stock I am considering, they are involved more with construction for the leisure industry (perhaps riskier) but are branching into municipal work, such as Las Vegas airport. They have been crushed from $65 to $25. Like the others, they have a big wad of cash, over $15 per share. They have about $8b in backlogs, which is about 18 months of work for them.
Enough about construction. I did have one stock announce earnings today: QXM. They were on par with many of my earnings of late... they sucked (Qiao Xing Mobile Reports Second Quarter 2008 Operating Results). The stock was down as much as 24% at its low for the day, but rallied to finish down 15%. When I read the report a few things caught my eye.
- It was clearly not a great quarter as revenues were down substantially (-54% y o y).
- They still made money. Gross margins were up and they had operating income of $11m.
- They said they are quite bullish aboout the rest of 2008 as they have rolled out a new phone that is selling well and has high margins.
They could be lying. But on Sept 12th, they should have a pretty good bead on 3rd quarter sales. If they are not lying, that implies operating income in the 2nd half of 2008 = ~$50m. For a company with $198m market cap and $400m in cash? It seems too good to be true. If smarter people than me can explain what is wrong with this view, let me know.... please!
Anyway, I am bullish on QXM and may buy more if I can scrape together a couple rubles. I figure I'll either be rich someday on QXM, or disappointed once again as I chase after the holy grail. I think I'll call it a wrap. I need to find out how Hurricane Ike is doing. Working in insurance industry makes the weather channel must see TV from time to time!
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7 comments:
So how often does QXM report? Do we only get annual reports or quarterly calls?
If the company actually exists, haha, this is probably quite the bargain I'd say. We can almost buy for cash less all liabilities, with a free profitable business..
Jeff, if the company didn't exist, you think they'd post better earnings! They do report quarterly.
MG
Hehe, right you are!
Do they put out quarterly reports? I can't really tell if they just announce earnings or actually put out a Q...It would be tough without regular balance sheet updates.
Thanks!
Jeff, I did look at www.sec.gov and you are right. It appears they do not file a 10-K or 10-Q. They only have a 6-K which appears to be nothing more than a press release.
Well, they do have an annual. The report is 20-F.
As for quarterly, though, I don't see it. Thus, we couldn't be assured of the most current cash balances and net income / cash flows. We only get an announced 'operating income' number.
RE ". . .One thing about MFI is that certain sectors will often start appearing on the lists as there is a rotation out of that sector. Does that mean the stocks are not worthy of our attention?"
As long as we can figure out how not to be trying to catch a falling knife, no, that does not mean they aren't worthy of our attention. However, I've been burned enough times doing exactly that to be wary here.
Thanks for the list. These guys will have their day.
I'm long QXM.
Within the past few days, they announced a $20 million stock buyback program, which is a high percentage of their market cap.
I also can't understand why the stock is so cheap. Much likely has to do with the fall in the Chinese stocks over the last six months or so. Throwing the baby out with the bath water.
Another Chinese MFI stock that's tanked this year is CHCG. It also seems very cheap here.
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