Synex International Inc. (SXI.T) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Synex International Inc. (SXI.T)

SXI 230.05

-1.9%

1:09 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Dick Martin who wrote (14)	8/13/1998 9:26:00 AM
From: Ally	Read Replies (1) of 42

Hello Dick, Not being familiar with the power generation business, I am intrigued coming across a company such as SXI. The thought of power generation companies usually brings to mind of giant monopolistic utilities corporations. It is refreshing to see small companies like SXI being able to foray into the business. However, what competitive edge do small companies such as SXI have over the big guys? Why would towns and corporations trust their power supply needs to small companies over the big utility stations? By understanding the competitive environment an investor would have a better perspective on the growth prospects of SXI's relationship with New Power Corp. The reason why I asked the question about whether SXI has a debt load policy is because of what happened to New World Power Corp. The need to increase debt to fund growth may decrease financial strength to the point where it is overly vulnerable to unexpected shortages in operating cash or rise in interest rates to service the debt. As far as the Yongnian Cogeneration plant goes, I'm less bothered by what the structure of the equity arrangement will be. I assume that SXI has the financial brains to ensure any type of equity structuring will be fair and beneficial to SXI shareholders. I'm more concerned by the economic and political risks of doing business in China. From what I read, China apparently does not have a legal system to bring comfort that contracts are firm and binding agreements. Apparently, the business climate in China is one of "knowing the right people" as more important than written agreements. F9 seems to be a viable and growing business, even though it is unusual at first to find an accounting software business in a utility company.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next