Analyst johnpaul bennett and ron sivick thursday september 24 th 2009
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Analyst: JohnPaul Bennett and Ron Sivick Thursday, September 24 th , 2009. Current Stock Price. Stock Price $ 51.82 (as of 09/23/09) 52-week range $34.33 - 59.22 Market Cap $209.02 billion (Large, value stock) Beta 0.87 IMP Portfolio currently holds 0 shares of CHL.

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Analyst: JohnPaul Bennett and Ron Sivick Thursday, September 24 th , 2009

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Analyst johnpaul bennett and ron sivick thursday september 24 th 2009

Analyst: JohnPaul Bennett and Ron Sivick

Thursday, September 24th, 2009


Analyst johnpaul bennett and ron sivick thursday september 24 th 2009

Current Stock Price

Stock Price

$51.82 (as of 09/23/09)

52-week range

$34.33 - 59.22

Market Cap

$209.02 billion (Large, value stock)

Beta

0.87

IMP Portfolio currently holds 0 shares of CHL

Sources: Yahoo Finance, Morningstar, Datamonitor, Valueline, and Valuepro


Analyst johnpaul bennett and ron sivick thursday september 24 th 2009

Company Overview

  • Sector: Telecommunications

  • Industry: Wireless Communications

  • China Mobile Limited provides mobile telecommunications and related services primarily in China, Hong Kong, and internationally

  • It offers mobile voice services, such as:

    • local calls

    • domestic long distance calls

    • international long distance calls

    • intra/inter-provincial roaming

    • international roaming

    • voice value-added services

  • The company also engages in data businesses, which include short message services, wireless application protocol, and multimedia messaging services, and provides various data products, such as java applications, IVR, and PIM

  • In addition, it offers agricultural information services

  • As of December 31, 2008, it had approximately 498million subscriber base

Sources: Yahoo Finance, Morningstar, Datamonitor, Valueline, and Valuepro


Analyst johnpaul bennett and ron sivick thursday september 24 th 2009

Intrinsic Valuation

3 Stage Dividend Discount Model

$159.13

Undervalued (CP<IV)

Current price =$ 51.82 (09/23/09)

Intrinsic Value =$159.13

Sources: Yahoo Finance, Morningstar, Datamonitor, Valueline, and Valuepro


Analyst johnpaul bennett and ron sivick thursday september 24 th 2009

Valuation Ratios

Sources: Yahoo Finance, Morningstar, Datamonitor, Valueline, and Valuepro


Analyst johnpaul bennett and ron sivick thursday september 24 th 2009

Key Statistics

Sources: Yahoo Finance, Morningstar, Datamonitor, Valueline, and Valuepro


Analyst johnpaul bennett and ron sivick thursday september 24 th 2009

Key Statistics cont.

Current Ratio1.281

Experts opinion on the industry: Buy or Hold

Sources: Yahoo Finance, Morningstar, Datamonitor, Valueline, and Valuepro


Analyst johnpaul bennett and ron sivick thursday september 24 th 2009

2 Yr Price Performance of CHL vs. Competitors

Sources: Yahoo Finance, Morningstar, Datamonitor, Valueline, and Valuepro


Analyst johnpaul bennett and ron sivick thursday september 24 th 2009

5-Year Comparison with S&P 500, Shanghai SE Composite, and CHU

Sources: Yahoo Finance, Morningstar, Datamonitor, Valueline, and Valuepro


Analyst johnpaul bennett and ron sivick thursday september 24 th 2009

Strengths

Weaknesses

  • Prominent mobile telecommunications player

  • Growth through acquisitions

  • Strong financial performance

  • Declining key parameters

  • Lack of broadband services

Opportunities

Threats

  • Strategic alliance with SOFTBANK Corp and Vodafone International

  • 2010 Shanghai Expo

  • 3G technology

  • Intense competition

  • Limited spectrum allocation

  • Stringent government regulations

Sources: Yahoo Finance, Morningstar, Datamonitor, Valueline, and Valuepro


Analyst johnpaul bennett and ron sivick thursday september 24 th 2009

Headlines and Reports

“…far ahead of its nearest competitors. Additionally, a strong balance sheet, strong free cash flow and sustainable dividends facilitate the company's efforts to weather economic volatility…” –Zacks.com

“There is much more room for growth. Many rural areas of China are not deeply penetrated, and the country’s overall wireless penetration is only about 50%. China Mobile is advancing into un-serviced areas.”- Seeking Alpha

“China Mobile is the Goliath of the wireless communications industry in China… more than 70% market share in mainland China… those millions of customers provide recurring revenue year in and year out.” – Motley Fool

“China Mobile has a perfect five-star rating on CAPS… a perfect dividend stock”- Motley Fool

“Growth, financial health, and profitability received ‘B’ by Morningstar”

Sources: Yahoo Finance, Morningstar, Datamonitor, Valueline, and Valuepro


Analyst johnpaul bennett and ron sivick thursday september 24 th 2009

Recommendations

  • Long-term, value stock

  • Rock solid financial statements

  • Experts suggest fair value estimate is $63.00 and to sell @ $126.00

  • Durable for weathering economic volatility

  • Strong government support

  • Buy 60 shares of CHL @ 51.81 (price as of 09/23/09


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