Well Guys,
After the stock started to fly I checked out Sungold's homepage and read their three latest announcements.
I have to admit that the story on Sungold's Korean Joint Ventures shows tremendous upside potential, if there would not be the famous IF!!
I am missing several points in Sungold's news releases and web pages. Just some questions:
1. Did they never check the Korean Investment Laws? A publication, released by the MINISTRY OF FINANCE AND ECONOMY REPUBLIC OF KOREA in January 1996 states on page 13, that the following BUSINESSES ARE RESTRICTED TO FOREIGNERS: Radio and Television Broadcasting, Wire Broadcasting, News Agency Activities, Golf Cours Operation and GAMBLING!?
2. I am asking myself if they do not know, that KOREANS ARE NOT ALLOWED TO GO TO KOREAN CASINOS? If the Koreans can not gamble, where do they get the big hords of gambling tourists from and why should they go to Korea when they can visit other casinos in real tourist areas such as the Philippines, Malaysia and other countries in South East Asia which have better weather, lower costs and more attractions?
3. In reagrd to their news release of 12/02/96 some points have to be highlighted:
a) it is no big deal in Korea to get an STZ (Special Tourist Zone) approval. Many companies have received it. However, such an approval does not automatically grant a casino licence. (Don't forget the restrictions on foreigners...)
b) how big is the island in reality? Some say it is only 2 acres (just big enough for a house!)
c) finally they claim their stake in the joint venture to be 50 %. On their homepage it was 60 %. Just a mistake? If yes how reliable is the rest of the released information?
Anyway, I am not invested in this stock and believe me, I am not going to be, but I thought you might be interested in some background infos.
Wish you good luck!! |
