China Oilfield Services (2883.HK)

(A Top Pick July 10/14. Down 56.67%.) Oil was a bad place to be, and being in China was even worse. This company does all the exploration offshore, for China. China wants to decrease their dependency on imported oil, so they will continue to spend money offshore. Trading at about 60% of its tangible book value, which is more than 2 standard deviations below its norm. It is cheaper than it was during the crisis in 2008. He can’t sell at these levels, if anything, would be adding to his holdings.

A really good growth company. Have done a great job of slow and steady growth. They do offshore drilling in China, and China needs a lot of oil. Even if there is a slowdown in housing, there will still be a huge demand for oil. Trading on single-digit multiples with double-digit growth. Yield of 2.69%.

(A Top Pick August 9/12. Up 32.95%.)

(A Top Pick May 3/12. Up 35.45%.)

It is about valuation. Trades almost in single digits. Sister company made acquisitions in Canada and will provide opportunities for them to learn. Expects they will grow. Doesn’t expect oil to go through $100. It is self-correcting and as they get too high it slows down the economy.