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Strategies & Market Trends : Value Investing

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To: 18acastra who wrote (5263)	11/10/1998 2:06:00 PM
From: MCsweet	Read Replies (1) of 78814

GAI I think this is an excellent suggestion as a value stock. If it were in the US, and we knew a little more about the management it would be a definite buy. Unfortunately, it is based in Hong Kong where (a) accounting standards and management accountability are a lot less strict (b) there are currency risks and risks of intervention from the Chinese government (c) we have the general overall Asian crisis That being said, management appears to be taking all the correct steps. (The story about Sunbeam seems reasonable, since Sunbeam is having major problems.) It does not seem wise to build plants right now when demand is weakening. It appears that the company has lots of US cash and no debt, which is heartening in terms of potential currency devaluations. If someone could get some more info on this company (esp. management), I would view it as a good potential high-risk buy. Not something to bet the farm on, but appropriate for a small part of a portfolio. I just wish we knew more about the company.

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