Anyone have opinion on some of the recent news posts, i.e., CMGI pulling out of Asian Venture, GigaMedia forming alliance with Yahoo!, pulling out of JV with PCCW and ERA, Asian analyst revaluing PCCW, another analyst saying PCCW could go under HK$13. (think is was $12.25-80??).
The last day's articles give me a little anxiety for the stock price in the near future. Hoping that Daddy might enter picture with some juicy JV...but, Richard Li is a big boy and we can't expect Daddy Li to rescue him, but it would be nice.
While I am concerned about the price of the stock in the near future, I still believe in PCW's story, just may take longer to get there. It is sometimes hard to remember that PCCW and their story is not that old.
If we start seeing problems with the Telestra JV, then I will seriously begin to worry that PCCW will be heading into deep troubled waters.
When Alex Arena, Deputy Chairman, Executive Committee, Pacific Century CyberWorks Ltd. appeared on CNBC on August 22, I believe it was a feed from Boston. During Arena's trip to the states, he did stop in Boston. I can only surmise it was for a meeting with CMGI.
After CMGI news of this past Thursday, Arena might have been in Boston for meetings with CMGI over their withdrawal from the JV and CMGI's desired to purchase PCCW's Asian Venture Group. In CMGI news release they state they had been interested in purchasing same, but had not been able to agree to terms. While CMGI says they continue to cooperate with PCCW, there does not seem much left to cooperate over.
Even after doubling our position last month, PCW does not represent a major % of our portfolio. However, some of you have invested heavily, with an entry above US$2.00.
There are have analysts and websites who write on Asia who have beaten up on PCCW from the beginning, saying the value is US$0.65/share (Webb-site.com) to other giving a high of US$4.10/share on the combined PCCW-HKT company. Hopefully, US$1.60 will be the bottom. IMO Quamnet and Webb-site are very any Li family, but they may have good reasons, and not just anti-Li.
I never looked to turn a quick profit on PCW, but did not anticipate we would drop so much AFTER the HKT merger. Adding to PCCW's loss of the JVs w/CMGI and GigaMedia, are the losses reported by Pacific Century Insurance. All in all, not a very good week of news for PCCW.
Anyone have any views or opinions on the troubling news of the past few days?
All of these points are JMVHO, of course. And I remain, Long on PCW.
Merry |
