I bought 20 China mobile shares at  USD  50,09 each, spending a total amount of $ 1000,18 fom my October monthly investment.

China Mobile didn't find an agreement with Apple
China Mobile didn't sign an Agreement with Apple, but…

I chose  world’s largest mobile operator for my October $1000 investment because:

1. it is cheap with P/E = 11, Forward P/E 10,
2. it grows Quarterly Revenue Growth (yoy):17.90%  Quarterly Earnings Growth (yoy):44.70%
3. It is loaded with cash, $25 Billion, and no debts.
4. It gives out 3.5% dividend
5. More and more Chinese people are getting their first mobile phone

3 responses to “Even in this market, I keep buying. China Mobile (CHL) looks like a safe bargain to me”

  1. Nurseb911 Avatar

    There’s obviously a large untapped market of consumers in China and other emerging markets. Even if growth slows, the numbers still help to make many of these emerging consumer stocks a compelling investment.

    I haven’t studied the stock in great detail, but with recent market volatility it might be one that an investor should start examining if they have a long-term investing outlook.

  2. Simon Avatar
    Simon

    Very good investment idea! I have looked to this sector as well as a great way to tap into China’s growth:
    What was your comparison with China Telecom over China Mobile?
    The first is smaller,cheaper,larger dividend?
    Just wondering your research into this, as I am leaning toward a purchase of China Telecom!
    But would love any help to pick between the two!
    Keep up thye awesome blog!
    Any help would be greatly appreciated!

  3. deminvest Avatar

    Do you mean China Telecom Corp. Ltd. (CHA)?

    It seems to me that its dividend Yield is 2.9%
    http://finance.yahoo.com/q/ks?s=CHA

    While CHL yields a little bit more: 3.1%
    http://finance.yahoo.com/q/ks?s=CHL

    China Telecom does mainly land lines. I looked at what is happening in Europe and the US:
    land-line companies like Deutsche Telecom, France Telecom and others that can’t grow and are actually losing customers to cell phone companies. I read that this happens even more in China, where many new users go directly to cell phone. They don’t even bother buying a land line service.

    Looking at CHA confirms my ideas: year on year revenue growth 0.8% only. Earnings year on year are even on the negative side: -8.2%

    CHL is growing both revenues and earnings, as you can read in my post.

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