Jim and Bob: Let me clarify here that I do not against people invest in "Red Chips". There sre stocks listed in NYSE from China, some went bad, some are still good (check out all the petro-chem companies from China).
But I do feel the promotion of DWSC is dishonest and inaccurate. They only paint the picture based on "projected" earning created by themself. I don't know who is behind this, but for sure I have the instinct from many years of experience to tell it's bogus claim.
Let's back to the road situation in China. China is a development country, with very limited resource compare to US. The government had made many plans to build moden infrustructure. Current emphasis is on energy, transportation. But it takes time to archive the goal. I don't deny there are highways already in place. I droved several on them. The best is from Tainjing to Beijing, Nanjing to Shanghai, and Guangzhou to Shenzen. But they are not connected as a network. They are seperated, short in distance, and some have only 2 lanes (Traffic break down quite often).
Beside this, the point is who should admited to drive in China? Certainly not the ordinary Joe from HongKong. If the guy does own a car in Hongkong and can obtain the drive's license in China, chances are he/she will prefer take a cab in China. It is not desirable for the rich people (I assume one should be called rich if he/she can own a car in HK) to drive themself in China. It is a simple issue of status. So who is the targeted market? Even if the market is there sever years from now, will the margin this much high as stated?
There is another issue I am not sure I should point out here, the facility of Chinese highway. I see no rest point along the highway (They are short in distance in anyway), hardly see the gas-station that will sale on cash base (Many gas-station use alocated coupon besides paying the cash). I hardly see any motel which prompted me to
engage activity of trying to find investors interested in establishing motel chain in last year. The list can go on and on. The bottome line, will DWSC make it? maybe in much less margin than the promotor stated and smaller scale. I don't see them have any real income at least a year from now, and I doublt they will be profit at begining.
Sam |
