According to foreign filling, Seth Klarman’s Baupost Group bought $30m of SAMCHULLY CO LTD, a South Korean nat gas. company on 1/12/11.
Below is a brief profile:
Samchully Company Limited operates in the Natural gas distribution sector. Samchully Co., Ltd. is a Korea-based company principally engaged in the provision of urban gas. The Company mainly supplies liquefied natural gas (LNG) to residential and commercial customers in Incheon City, Suwon City, Bucheon City, Anyang City, Yongin City, Anseong City, Pyeongtack City and others. The Company is also engaged in the integrated energy supply business which supplies heat or both heat and electricity from more than one integrated energy production facility to users in residential, commercial and industrial areas; the compressed natural gas (CNG) recharging business, which operates Incheon CNG recharging station and other stations in Korea, as well as the new and renewable energy business, which operates Hampyeong photovoltaic power plant and others.
Recent stock price:
Below is a chart of some valuation ratios from BBG:
This looks like a cigar butt dirt cheap stock. P/S 0.1, P/B 0.4, P/E 4. This is a cheap play on natural gas, possibly on the assumptions that the oil/gas ratio will revert closer to the mean, as nat gas becomes more expensive. This seems highly unlikely, but it could be a contrarian play.
Furthermore, although EPS has dropped for the past year, the trend of revenues and earnings has increased over past few years:
Even if natural gas doesn’t increase in price, the company seems to be growing nicely, while the price has only been falling.
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