E-House News Update

An interesting ancillary article from a reader was forwarded to us this weekend. Although we don't make investment decisions based upon outside firms opinions, research or news letters, it is interesting none the less to see what others are thinking regarding our investments.

There are many positive informational points and analysis throughout this article. One in particular is this tidbit here:

“Chinese laws require that homebuyers put up a 20% to 30% down payment, but a whopping 83% of all homes in China were purchase with all cash. That may sound impossible, but not in a country that has a 20%-plus savings rate."

That in our books is what Margin of Safety investors like to read about and what helps provide a cushion is a cautious market. As a Chinese investor might say, it's like backing a real "Black Horse" (Beating Expectations) Have a good weekend.

R&R

Some weekend R&R: Reading & Research turns up this interesting commentary on a rather 'boring' company - Nordson. (NDSN) As a general rule of thumb, we like boring companies. Strong earners that don't need front page headlines to move share price or "add" share value.

Article Quotes:

"Chances are also good that you've never heard of this company, which is based in America's heartland and traces its roots to the automotive industry at the beginning of the 20th century.

Nordson, with annual sales of nearly $1 billion, makes precision dispensing systems for applying adhesives, coatings and sealants in a wide range of industries. It also makes testing and inspection equipment for electronic components and adhesive systems and other products for the life-sciences industry."

Also noted in the article, it holds leading market shares in its main businesses, and with 70% of its revenues coming from overseas, it is well-cushioned from economic deceleration in the U.S. The weak dollar is an added boon. Comforting words to a worried investor in jittery or uncertain markets.

Share price is down on news of a recent acquisition, some analyst thinking they paid a bit too much. Researching relevant data says no. We would look for the stock to retrace some of it's recent lows. A share bellow $48.00 right now looks attractive. Given a market downturn or substantial weakness, we would look to buy in on a broad market sell off.

Here is a brief blurb on the company:

Nordson Corporation produces precision dispensing equipment that applies adhesives, sealants and coatings to a range of consumer and industrial products during manufacturing operations. The Company also produces technology-based systems for curing and surface treatment processes, as well as life sciences applications. Its products are used around the world in the appliance, automotive, bookbinding, container, converting, electronics, food and beverage, furniture, life sciences, medical, metal finishing, nonwovens, packaging, semiconductor and other industries. Nordson markets its products in the United States and 57 other countries. It operates in three business segments: adhesive dispensing systems, advanced technology systems, and finishing and coating systems. In October 2006, the Company sold its Fiber Systems Group to Saurer Ltd.'s business unit, Neumag. In May 2007, it acquired YESTech Inc. and PICO Dosiertechnik. In August 2007, the Company acquired TAH Industries.

Article Source: Barron's Online

E-House

Helping Chinese people live better. ~Mr. Xin Zhou, Chairman, Chief Executive Officer, E-House (China) Holdings Limited

That's the message. The promotion could be anything from "fast growing"new IPO, Chinese Bull in the right market with all eyes on China.

Here's where my focus differs:
(From the Web Site)

CFO Mr. Li-Lan Cheng has served as our chief financial officer since November 2006. Prior to joining us, Mr. Cheng served from 2005 to 2006 as the chief financial officer of SouFun Holdings Limited, China’s leading real estate Internet company. He was a partner at China Real Estate Investment and Management Co., Ltd. from 2004 to 2005. From 2002 to 2004, Mr. Cheng served as an executive director and the chief financial officer of SOHO China Limited, a real estate developer in Beijing. Mr. Cheng was an assistant director and the head of Asian transportation sector investment banking group of ABN AMRO Asia from 1997-2002. Mr. Cheng received a bachelor’s degree in Economics from Swarthmore College and a Ph.D. degree in Economics from the Massachusetts Institute of Technology. Mr. Cheng is a chartered financial analyst.

Looking at the line up of management, the market sector they serve and the growth services of real estate holdings in China this is an easy valuation. A conservative estimate says this company will out preform in the 2008 first quarters.

Midterm, later half of 2008 we are looking for a pull back in Chinese investments across the broad market. Long term the growth story in Asia remains intact. Numbers matter and as a American adage once promoted "Location, Location, Location......". This is a real estate operation in the right location, with the right management team in place. A "Margin of Safety" in a somewhat overvalued Chinese Market.

The amount of recommendations for Chinese investments on this web site is expected to be few. Although subject to change, the valuations for the Chinese Market, it's recent (2 year) bull run and relative valuations make recommending relatively safe investments extremely difficult at this time.

Please note, all investments, conservative, "risky", small cap/large cap, liquid or thinly traded all carry a measure of risk and can lose value over time. Make investment decisions wisely and after considering all your options. As one friend once put it, "Responsible investments don't happen on the golf course." Do your own due diligence before considering any recommendations, suggestions, opinions or ideas and take ownership for your actions. This is the first step in responsible investing and long term will lead you to successful investing.

OUR BUY: Under $23.00
OUR SELL: $31.50 or better

Liquidation of position if it drops bellow $18


Regards & happy Trading!

Ivanhoe Energy (IVAN)

Something that we have been considering is an investment in Ivanhoe Energy. The recent down cycle in the stock coupled with the (non) reaction of the market after the Fed cut makes this as attractive opportunity for a price bottom.

Our attractive price buy in is under $2 a share to sell if it drops below $1.25. The going forward catalyst for this company is in it's recent shift from development & testing to production & implementation of build out projects.

The story here is short. They take a lower worth asset of heavy crude to a higher grade value of light crude at a higher market pricing. The return value of offset components is compelling because it attributes to cost of operation. The production facilities are scalable, and the focus up north should prove to be a profitable commercialization aspect. Long term the shark has jumped on this stock and it's technology.

The partner process and banking investment should prove out in the next 30 days. We will monitor the developments going forward, and update the process.

Keeping with our focus & thesis, this stock is undervalued and meets the criteria set forward in our original statement of undervalued assets.

Regards.

As We Start

Only three types of investments exist -

1. Under priced,
2. Fairly priced, and
3. Overpriced.

This is the concept of this site. Make sure your investment starts at one or two. How you do that and considerations for gaining value is this sites purpose. We look long term, with short term trades to work our capital along. Place your money on value, it pays off.