Guangshen Railway Co. Ltd (ADR) (NYSE:GSH)

Evolving business + China stregnth

Woooo-Woooo!

http://wiki.fool.com/The_Graham_Number Formula: Fair value=Sqrt(22.5*EPS*BV) I expanded it a little by also using EPS Normalized and Tangible BV My current Graham Number Valuation Range for GSH: $33.19 to $35.95

Great buy in point in low $14's. Easily able to handle the dividend payment. Feeling a hangover along with other Chinese stocks. This is a company with hard assets so not concerned about the massive fraud that we've seen in others.

GSH's annual earnings are up 11.45% for this year, with dividends set to pay out at just over 5%. A leader in the rail industry, GSH will continue to expand not only in China, but its technology and consulting sectors will serve it well on the international market.

Reasons to sell:
-China's economy slows
-The Chinese government's heavy-handed management looks to take a turn for the worse

Because the S&P 500 won't be there in five years.

Worth a bet with CAPS points, but I'm not ready to buy an overseas railroad in real life.

k03

Dividend and play in rising yuan

One of the hits in a screen for non-US income stocks.
http://www.fool.com/investing/international/2011/04/28/7-international-income-stocks.aspx

1. Very reasonable valuation.
2. Trains are cool.
3. Decent dividend.
4. Yuan is likely to get stronger vs. the dollar.
5. Growing economies need to move stuff. Rail is the most efficient way to do that over land.
6. I don't have any Chinese stock picks yet. Might as well start with a 5-star.

Disclosure: No position in GSH at time of posting.

GSH is a chinese railroad company. It trades below bookvalue, below the 20, 50 and 200 day average, features a low .15 debt/equity ratio and 11% profit margin [data from finviz]. The company will naturally benefit from rising chinese domestic consumption, as well as from rising oil prices. Thus this pick reflects a positive outlook on the chinese economy, and on the prospects of a currently undervalued stock with excellent prospects to benefit from future chinese (and global) economic growth.

Dividend paying Chinese railroad servicing near Hong Kong with a proven track record. Attractive for those looking to invest in China but nervous about smoke and mirrors accounting.

Global gains pick.

China is spending alot of money on infrastructure development and GSH aims to benefit.

Could pick up some steam and start moving up the tracks.

Lots of people in China! :)

Get in @19.35 and 17.51 in two trades. China is going to have a lot of growth on railway. This is operating at the one of the most developed areas.

In agreement with the Fool

Yes!