eCurl,>>>I do not disagree on the great upside potential of China internet play. Yet, it never hurts to take a closer look at underlying operations, beyond the fact that someone has a cool name and happens to operate in the right space. <<<
Life is not always fair. But getting back to the issue of why China.com is a good bet - all I have to do is repeat some of the things you are saying:
1. China has great potential as an Internet play.
2. China.com has a cool name.
3. China.com is at the right place at the right time and occupies the right space.
4. China.com has a lot of money - besides the money they made on the IPO - they have raised quite a bit of money before the IPO and I suspect they have plans to raise a lot more money subsequent to the IPO - only now they have quite a bit more credibility
5. China.com has the right partners - AOL owns 10% and has options for another 15% - SUNW, Edelson Technologies - and the Chinese government. If the Chinese government is going to intervene, think about what might happen to the other non-government related Internet companies? It may be a mixed blessing to have the Chinese government as your partner. Also, they seem to have positioned themselves in a way where they have access to all the latest internet technologies.
6. Take another look at the names of some top management personnel - some of them sound distinctly occidental. I don't know what that means, specifically, but, I don't think that is going to hurt.
7. Steve Case as a role model. Steve Case if you have forgotten has for nearly a decade surprised investors by coming up with creative new initiatives - quarter after quarter. Remember AOL had only 6 years ago, less than 250k subscribers. Can China.com use the same blueprint from hindsight to acheive similar, if not better results?
I don't remember who said it (maybe it was Yogi Berra <ggg>): The race does not always go da the swift nor the battle to da strong, but that is the way you bet.
Regards,
Mary |
