Isn't this China news bullish for G*? (see bolded section). Less competition in China for G* as telecom infrastructure projects are canceled/delayed.
COMMENTARY >> WRONG! REAR ECHELON REVELATIONS
What's Behind Trade
Problems in China?
By James J. Cramer
7/21/99 8:33 AM ET
Remember the trade gap? Those of us who traded in 1987
aren't likely to forget it.
In '87, I couldn't fall asleep the night before trade gap
numbers. They were the source of all jitters, and every time
we saw a widening of the trade gap, the bonds and the
stocks got hit.
How things have changed! Yesterday, the nation reported the
worst trade gap in its history, $21 billion, and I didn't hear a
single commentator even mention this horrid number as a
factor in the selloff.
That's wrong, especially when you look at where a lot of the
trade problems are coming from: China. What worries me
about China is that many of my companies are backing
away from claims made last year that this would be the year
that all of the investment in China would pay off.
Some of the bigger telco-tech companies have poured
billions into China looking for orders. But ever since the
mistaken bombing of the Chinese embassy in the Serb war,
China has suspended some of the larger projects and
ceased ordering.
This China problem keeps creeping into off-line
conversations with managements and analysts. The
business just isn't coming through.
If you are hearing anything about the problems with China,
maybe you could share it with us at the site, because right
now it looks like one of the biggest undiscussed worries out
there. We should try to pin it down before everybody starts
acting on it.
James J. Cramer is manager of a hedge fund and
co-founder of TheStreet.com. At time of publication, his
fund had no positions in any stocks mentioned. His fund
often buys and sells securities that are the subject of his
columns, both before and after the columns are published,
and the positions that his fund takes may change at any
time. Under no circumstances does the information in this
column represent a recommendation to buy or sell stocks.
Cramer's writings provide insights into the dynamics of
money management and are not a solicitation for
transactions. While he cannot provide investment advice or
recommendations, he invites you to comment on his column
at jjcletters@thestreet.com.
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