more about convertable and chaoda

after I sold the shares in chaoda, the share price increased. looks like I over estimate the impact of the convertable bonds

1) excluding the loos due to fair value of convertable bonds, the underlying business in chaoda actually performed better

2)At the time I sold the shares the PE is very low at 9, even all the convertables dillusion took into account the fully dilluted PE is still 9.9 not very demanding

3)The company sold the convertables last year, the market actually have already priced in the convertable dillusion effect.

Lession: Look the underlying business of the company, financing cost usually is not as important as underlying business