>>Sam, we need your help:
webshop.net <<
Jeff, I have looked at it over. Basicly it's an artical about Ex-CEO who turned around Shenhua (taxi and transportation company). The article says they have an annual sales of $10Mil and sales growth rate of 50%. I will post the detail of the article if I have time to translate it (sorry it will have to be after this long weekend).
I have no problem with Shenhua and it looks like a descent company. But I don't feel impressed by their growth either. You may ask me why?
Well, if you know a little bit of Shenzhen's history, you will know what I mean. Shenzhen is a little town next to Hongkong. It was a largely a farmer's town before Economic Reform in China. The city become a fast growing place after Deng XiaoPing promoted open door policy in China, since it was the first place to be appointed by central government as an "open port" and land of experiment for market economy. The city come out no where but created a magic in the history. in 10 years, it translated itself from farmland into one of the morden city in China. the population grow is also exponantial since many people in China wanna to find a job there. China has more millionair made in this city than any other cities. It largely enjoyed policy of free tarriff and market economy. Over the years, the city's economic growth rate is on the top of the nation, with average of 30% per year. I have a friend went to Shenzhen when I took off for US. last time I visited him, he was driving a better car than I do and owned 5 appartments, and he is in no where to be the "richest". But the economic has since slowed down starting 1995, due to more open policy in other part of the country and 14 more cities joined Shenzhen to enjoy the special policy from Central government. Also the advantage of cheap labour is evapolized. This city has a population of average age less than 30 yr old, full of energy. 50% growth is not some impressive number if you satrted from $1.
My lunch time is over. If i have some extra time today, I will make a list of question regarding DWSC and reasons why I am in favor of this stock. So long!
Sam |
