No. of Recommendations: 10
I reran the numbers this weekend. Baking in the new guidance, but accounting for slightly deteriorating margins and a the normal corporate tax rate, it looks like buying around $8.50 or so would be where I'm comfortabel with the margin of safety and opportunity to earn 20%-plus annual returns.

Using a 14% discount rate, the fair value is about $10. It can also get a little silly if you assume multiple expansion, but I don't think the market is going to pay more than 12x or 13x earnings for small Chinese companies in this volatile environment.

Tim
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