Thanks for the info 007. i have a look at ENC. it is pity that I...

Thanks for the info 007.

i have a look at ENC. it is pity that I was not aware of this little company prior. The business profit and its margin are improving and the privatisation is great for buyer and shareholders gained for the short term benefit. However, sharemarkets is due for correction, this is great for the short term players.

XPD is however much better business in the medium/ long term as Htran has outlined before. It is making lots of money, sales is in high digits to double digits growth in China, no short or long term debt, high profit margin. This company is for the true believers and value investors, if you believe those numbers.

As I say before, time will tell XPD. Don't write off China companies yet as their entrepreneur spirit is enormously diverse and powerful with 1.5billion population backing them up. With roughly another half of billion of population to come out of poverty line ( that's right , 20x the size of Australian population) and making roughly a size of Australian population every year (18-20 millions) at projected birth rate next year, you don't want to ignore these power built in their economy with the growth rate of 6-7% annually.

Even if XPD failed to come to realised its potential, don't let it put you off. Try to invest in Hong Kong to get exposure to those large Chinese companies. ( of course not right now as market had gone wild recently).

For those who can't afford to lose money in this company, quote Charlie Munger " if you know where you are going to die, don't go there!"

Have fun investing