Jeff, Sina.com is a US-Chinese Internet Portal, which has established itself as 1 of the big players in the Global Internet environment. English speaking people who want to find out what's going on in China will log onto Sina's English version, & Chinese speaking people who want to find what's happening in the rest of the world can log onto the Chinese version in either the US or China. They have demonstrated substantial growth in page views, and as such, have potential to generate revenues through Internet Advertising. This is how Yahoo got started. By virtue of the Potential of this company & the money behind it, SINA's market cap will be enormous right off the bat. Let's look at EBAY who went public last summer. It's current market cap is $21 Billion & it's 1998 Revenues (Not profits) from the most recent SEC Filing were $47 million. That's a Market Cap to Revenues ratio of ~500. Do you think Mainstream Internet Analysts who are putting out a BUY recommendation for EBAY are doing so based on it's current financial performance... or it's Potential. Once these companies establish these Huge market caps, they start looking for ways to grow revenues. The easiest way to do this is through acquisitions, since they are using their inflated stock price as the currency that makes these acquisitions possible. This is "consolidation", a fancy way of saying, "buying your competition". Remember that currently the Internet in China is a closed market & you need a license from the government to establish yourself. This puts XNET at a distinct advantage over "outsiders."
A visionary is someone who see's potential before the mainstream recognizes it, and as such Dorine, Apavolic, Myself and a handful of others were visionaries when it comes to XNET, since we were buying it 4-5 months ago at 34-40¢/share and couldn't understand why no one else was recognizing the potential here. Although your perception is that the stock price is "languishing", I'm quite happy that it's 10X what I originally bought it at & am still adding to my position at these price levels. The bottom line, though, is that the true potential for XNET & CBET won't be realized until they get a NASDAQ listing, & I'm holding on tight for the promise of that potential.
Hope this clarifies my previous post for you Jeff,
Regards,
Frank |
