I think this is cheap-ish, and can potentially grow substantially and I'l likely regret it, but it falls on the too hard pile for me. By the way, thanks for writing thoughtful posts, and for the hospitality in the comments.
I'm a bit worried that NOAH might be a scam. Why have they increased the number of shares in 2023 if they have so much cash? Anyway, there have been relatively many (small) Chinese companies with high cash holdings in the past that turned out to be scams. In these cases, the cash did not even exist.
Interesting ideas! Thanks for sharing. In my opinion, Dada´s case is more a bet than an investment. Who knows what can happen after reporting revenue overstating!! Therefore, why not paying the bet by buying call options?
While Noah is cheap optically, no one is rushing to buy the stock the same reason no one is rushing to buy cheap Chinese bank stocks: there are some real asset quality issues in some of its investments: some of these issues have already come to light, but many more others haven’t
And an interesting tidbit from the annual report:
Our PRC subsidiaries are permitted to pay dividends to us only out of their retained earnings, if any, as determined in accordance
with PRC accounting standards and regulations. Under PRC laws, each of our PRC subsidiaries and the Consolidated Affiliated Entities
are required to set aside at least 10% of its after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches 50% of
its registered capital. Although the statutory reserves can be used, among other ways, to increase the registered capital and eliminate future
losses in excess of retained earnings of the respective companies, the reserve funds are not distributable as cash dividends except in the
event of liquidation. As a result of these PRC laws and regulations, our PRC subsidiaries are restricted in their ability to transfer a portion
of their net assets, including general reserve and registered capital, either in the form of dividends, loans or advances. **Such restricted
portion amounted to RMB2,040.5 million, RMB2,950.5 million and RMB2,826.6 million (US$409.8 million) as of December 31, 2020,
2021 and 2022, respectively.**
I think this is cheap-ish, and can potentially grow substantially and I'l likely regret it, but it falls on the too hard pile for me. By the way, thanks for writing thoughtful posts, and for the hospitality in the comments.
Any view on the HK vs US listed shares? The docs suggest the ADR representing 2 shares but the HK share price does not seem to reflect this
I'm a bit worried that NOAH might be a scam. Why have they increased the number of shares in 2023 if they have so much cash? Anyway, there have been relatively many (small) Chinese companies with high cash holdings in the past that turned out to be scams. In these cases, the cash did not even exist.
Interesting ideas! Thanks for sharing. In my opinion, Dada´s case is more a bet than an investment. Who knows what can happen after reporting revenue overstating!! Therefore, why not paying the bet by buying call options?
While Noah is cheap optically, no one is rushing to buy the stock the same reason no one is rushing to buy cheap Chinese bank stocks: there are some real asset quality issues in some of its investments: some of these issues have already come to light, but many more others haven’t