I bought this here bike at Carrefour last week, kind of the Wal-mart of France for RMB320. I did the cash analysis and the bike will more than pay for itself in the next two months compared with taking a taxi, plus I will get to see the city. Even if the bike is stolen, I can replace it with another and still come out ahead! It took me an hour to ride to work the first day because I got lost. It now takes me about 15-20 minutes. I may even be able to find some short cuts.
Saturday, June 7, 2008
Rolling phat
I bought this here bike at Carrefour last week, kind of the Wal-mart of France for RMB320. I did the cash analysis and the bike will more than pay for itself in the next two months compared with taking a taxi, plus I will get to see the city. Even if the bike is stolen, I can replace it with another and still come out ahead! It took me an hour to ride to work the first day because I got lost. It now takes me about 15-20 minutes. I may even be able to find some short cuts.
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2 comments:
Jason,
Are you near enough to the "aftershock" areas to feel any of them? I believe there was a 5.0on Sunday near the Tauhua Mountain area.
Glad to see the Business Calculator and your knowledge of "Discounted Cash Flow" analysis has paid off and resulted in the bike investment. Given my image of the crowded streets, I would imagine it would be very useful and would aid your mobility.
Given your work schedule and social schedule ... almost sounds like you are burning your candle at both ends. (I have never truly understood what that ol' saying meant ... but it sounds 'scholarly').
I really enjoy your postings ... your writing style adds a degree of wit and almost gives me a feeling of being right there with you. Though after seeing the picture of the toilet facilities I am rather glad I am still here in good ol' West County.
Take care.
Ray K
Jason,
I have been reading a couple of interesting articles on the Chinese stock markets. As we may have discussed, I tend to stay with the American markets and buy American companies who do business world-wide. That way, they have someone on the payroll to watch currency fluctuations.
One of the articles discussed how new Chinese investors utilize a Stock Price to Pork Price evaluation to gauge the stock's value vs. using the Stock Price to Earnings Per Share or PE ratio we normally think about.
The articles call it the price-to-pork ratio.
The method compares share prices to the retail market price of pork, which I understand is the most common meat staple in China.
I believe pork is currently selling for about 8 yuan ($1.04) per jin, a traditional Chinese weight unit that is equivalent to 1.1 pounds. Any stock cheaper than a jin of pork is considered a decent buy.
By that yardstick, many Chinese stocks look far from expensive.
According to a popular Chinese investment Web site run by Panorama Network, as of Thursday there were 83 stocks cheaper than pork, and as many as 315 stocks close to that level, changing hands at below 10 yuan ($1.30).
That is close to a quarter of all stocks on the Shanghai and Shenzhen exchanges.
Based on my readings ... comparing stock prices to pork may not be as crazy as it initially sounds. A key factor behind the great migration of Chinese savings from bank accounts to the stock market in the last year has been the rise in inflation, which has been fuelled in part by a climb in food prices.
Retail prices for pork have almost doubled in the last 12 months to an all-time high, and May is normally considered a slow season for pork. With the demand on world markets for corn rising ... I imagine pork prices will continue to rise.
With inflation running at 3.3% and savings accounts paying 2.79% in interest, Chinese are effectively losing money on their bank deposits, the main form of investment in a country where the financial markets are in a fledgling state.
Hence, money has continued to pour into stocks, fueling an extraordinary rally that has seen the Shanghai benchmark index soar 50% so far this year despite repeated official warnings, including recent comments by central bank governor Zhou Xiaochuan that he was concerned that there was a bubble.
In a country with a population of 1.3 billion, the number of stock trading accounts is nearing the 100 million mark. What a business opportunity as the Chinese people continue to grow in their financial sophistication.
I hope you are having fun, learning a lot, and making lots of new friends.
Take care,
Ray K
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