I am sure many of my readers would have known this by now….That Cosco Corp is doing a 2 for 1 stock split. The first thought of mine, that of an unsaavy investor what that’s why this stock split, it is not as if the stock of Cosco Corp is so expensive and hence investors are not parking their money on it.. How true is this? Ask ourselves again, Cosco Corp did particularly well this year or should I say for the past 2 years, the stock price has doubled. Well, in my previous company, a great company even till today I think it is. a company with great fundamentals and a very good business model, they did the stock split when the stock price hit 1xx. Rational decision indeed.
Going to the coming months, personally I hope to see Cosco hit 4 dollars(I know how difficult it is!) but a split from 4 bucks is a nice..and it means that every stock after the split, will be 2 dollars, a fair value to pay, I should say. With strong fundamental, and burgeoning demands for materials, infrastructure, etc for the every growing chinese market…why would I bet against cosco. For any strong economy, there must be an equally strong mover/supplier/transporter of their economy…Given that China is already the world’s de facto manufacturer of goods, why would Cosco being in the right place and at the right time, capitalize on it…So, Cosco ships will set sail around the world delivering goods from Chinese factories to around the world. Without ships to move their products to serve the world’s market, I cannot see how Chinese economy is blooming and that is not hearsay! I seen it with my own ears when I was in China just weeks ago. Plenty of growth opportunities! Who knows? I may go seek my fortunes there. Well, that’s another story for another day..
In essence, Cosco corp’s growth should be in tandem with the chinese economy. From now till 2008, it is growth and more growth. Lest some shit happens….which I hope not.
Here’s Wynx signing off. Wishing you a huatful day.
~Clocking yet another step towards being debt free~