 Good day, fellow investors. When I find a stock that has no debt and that has huge potential for earnings growth, I stop and take a look. We're talking about Guangxiang Railway, a stock that's traded on the New York Stock Exchange but operates railways in China. As you know, there are a lot of people in China, a lot of them going by train, so it might be a very interesting long-term investment. I'll give an overview of the company very quick, risk reward, and then I put the company into my table of YouTube-analyzed stocks. I finally started, I should have started with the table much sooner, but that will add value, I think, to this channel and to what we do with the stock analysis here. So the company, as I said, there are shares traded in Hong Kong, Shanghai and New York, so you can pick where you want to buy. The key things to watch are reform, pricing reform, railway pricing reforms that might allow the company to raise prices because prices in China are way way lower, railway prices way way lower than anywhere else in the world. If I look at the financials, pretty stable, slow growth in revenue, slow stable growth, earnings per share were pretty pretty stable over the past 10 years and here is what might happen. If they allow for a 20% increase in price, which would increase revenue by, let's say, 10-15%, keeping the operating costs equal, the net income might double. And there you would see net income from, what is this, 1 billion, remaining to 2 billion, the dividend would double and the current dividend yield would also double. So the dividend yield now is 2.58%, if that doubles then you are already at 5%, which is not that bad for a railway, a safe business. However the PE ratio is a little bit high now, 23.46%. I would prefer to see it much lower and therefore this stock is not the buy for me. So let me first explain what's the difference between me and everybody else. Most analysts are relative analysts. They see railways in the world, this is a price earnings ratio that is good for a railway, let's say 24% and if their earnings double then it becomes a 12% price earnings ratio, which means the stock might double just because of the relative valuation. I'm not a relative investor, I'm an absolute value investor and that's a big difference and that's why Guangxiang Railway gets a no from me because I don't know when the reforms will come in, I don't know how fast will the reforms come in and if those reforms come, so a more market pricing on the market, yes revenues would go out, profits would go up, but they could also start investing inside some other players, the holding company that owns them might sell assets to them. So it's very questionable where would the money go. To put things into perspective I have put also this company in the table where I will put all the stocks that we discuss on a YouTube channel, you will have also the links and the tie table will be downloadable on my stock market research platform. So as I said government subdued pricing, the reform is the key, probably it will go up 100% somewhere in the future, but then I still don't know when will that happen. With the currency risks, with everything that goes on with China, I expect a return of 7% that might be 12% if everything goes well, but might also be 4-5% if there are currency issues, lower growth etc. So there is always risk. Here are the links, the grade is 2, let me explain you the table, how I'm going to grade, I'm going to say an expected average business return from the investment over the long term, back of an app in calculation, but it will give a good indication of how I think about the stock and what is to be expected. A grade from 0 to 5 if I expect a negative one, so that would be a short, that's an interesting one and also long term above 15 would be a 5. So for now I have four stocks here, NL generation, Chile, Facebook, Jiangsu Expressway and Guangxiang, Facebook and Jiangsu, for Facebook maybe a 5, but let's put it conservatively for NL is 2 and Guangxiang at 2. You might disagree, so I always like to hear your comments. Thank you for watching, just a quick note, see you tomorrow in the next video where I'll share five tips from a very, very rich person.