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Sally Jones
Sally Jones
Articles (580) 

Highlights from China - 5-year Lows

August 05, 2013 | About:

With the economic slowdown of China pulling at the stock market, a number of Chinese companies are on a 5-year low. According to Forbes, the market is down around 65% from 2007, the year that Guru Jim Rogers wrote “A Bull in China: Investing Profitably in the World’s Greatest Market.” Five years ago, no one could have imagined the difficulties of managing China’s economy today or that some of China’s small but promising companies would ever be 90% or more off high. According to the GuruFocus 5-year low Value Screen, these two companies have fallen to a 5-year low.

VisionChina Media Inc. (NASDAQ:VISN) – 99.6% off high

It has been a long fall over five years for advertiser VisionChina Media Inc. (NASDAQ:VISN),with shares currently priced at $1.91, currently 99.6% off a 5-year high of $467.00; the yield is 0%. Shares trade at a P/B of 0.40. Down 65% over 12 months, the company has a market cap of $9.8 million.

Advertising on buses and in subway stations in 19 of China’s cities, VisionChina Media Inc. delivers content and ads on mass transportation systems. Operating an out-of-home advertising network using real-time mobile digital television broadcasts, the company’s network consists of digital television displays located on buses and other locations for delivering real-time content and advertising. In 2012, the company’s extensive network included 107,821 digital TV displays across China.

VisionChina Media reported total revenues in the first quarter of 2013 of $17.1 million, with a gross loss of $5.1 million. The company reported an operating loss in the same quarter of $14.4 million and a net loss attributable to VisionChina Media shareholders in the first quarter of 2013 was $14.6 million. Vision China Media had cash and cash equivalents of $46.7 million as of March 31, 2013; net cash used in operating activities was $5.6 million in the same quarter. The company also reported 39,060 total broadcasting hours in the first quarter of 2013.

Two Guru shareholders are Louise Moore Bacon with 98,465 shares and Jim Simons with 62,255 shares. The trading histories of both show only losses so far. Bacon has lost an average of 73%, and Jim Simons shows a loss of 51% on his new buy as of the first quarter of 2013.

Historical Pricing:


Chinese Precision Steel Inc. (CPSL) – 98.1% off high

Chinese Precision Steel Inc. (CPSL) has also fallen far over five years, with shares currently priced at $1.28, currently 98.1% off a 5-year high of $68.04; the yield is 0%. Shares trade at a P/B of 0.10. Down 55% over 12 months, the company has a market cap of $5 million.

China Precision Steel Inc. is a niche precision steel processor engaged in producing and selling high-precision, cold-rolled steel products. The company’s fiscal year 2013 second quarter results for the period ended December 31, 2012 included revenue of $8.2 million, gross loss of $1.3 million, net loss of $10.9 million and fully diluted loss per shares of $2.80. The company’s international sales were $0.8 million or 10% of total sales for that time period.

Hai Sheng Chen, CEO of China Precision Steel, commented “While we continue to remain cautious about the near-term as the Chinese steel industry works through its overcapacity, we believe that the Chinese economy and steel industry will continue to gradually improve throughout the calendar year 2013 as the new government implements its policies for economic growth.”

Past Guru shareholders included Jim Simons and Steven Cohen both of whom sold out in 2011 and 2010, respectively.

Historical pricing:


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Check out the GuruFocus special feature 5-year low Value Screento find the stocks hitting new lows but are still held by top investor Gurus and Insiders.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 4.3/5 (4 votes)


Beltrancaceres - 4 years ago    Report SPAM
Jim Simons technique -- black box investing -- is essentially that. a black box. it is hard to link whatever he buys to a specific investing philosophy.

there's an elephant in the room here too --> fraud issues on Chinese stocks.
Sally Jones
Sally Jones - 4 years ago    Report SPAM
thank you!!
Fekafiemd premium member - 4 years ago
great comment Beltran! I agree completely.

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