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Gold/Mining/Energy : TS TELECOM (www.tstelecom.com): ASPIRING TELECO -- Ignore unavailable to you. Want to Upgrade?

To: Ciao who wrote (903)	11/21/1999 11:43:00 AM
From: geoff-t	Read Replies (1) \| Respond to of 1762

Ciao: a. I do not know the reasons behind pricing TS stock @HK$1.50. I understand that it is one of the smallest IPO among the first and second batch of listing candidates with China Agrotech being the smallest asking only HK$90 million. The MP3 player maker, Pine Technology offered 165 million shares @HK$1.50 to raise $247.5 million. My guess is that TS set the IPO price at a buck fifty to be in line with the other listing candidates to give the impression that it is not an expensive stock and work the numbers backward to arrive at 60 some million IPO shares. Having a low buy-in price for retail investors is not a bad strategy afterall. b. Yes, I know I can open an account with Dao Heng to subscribe for some of the son's shares. I also understand that one can open an account with Hongkong Clearing and apply for IPO shares electronically as well. But judging from the incredible investors' interest in the early GEM candidates, the chances of getting any meaning allotment is very remote. In the case of Pine Tech, I was told 90% of the IPO shares was reserved for institutions and employees, only 10% or 16.5 million shares was made to the public on a pro-rata basis. I think I will take my chances with the father play. I am sure I can get more there and better still at a much cheaper price. Yes, it will be easier for other NA telcos to gain entry to China's telecommunication market in light of China's "imminent" entry to WTO. But TS has the distinct advantage of having a very big foot in the door with so many heavy weight Chinese telcos as its customers. Besides, the main reason that I took a position in TS a couple of years ago was that I think its cable monitoring system is the defacto industry leader in China with so many of its units being used all over the map (of China), it will be almost impossible for a new comer to break TS almost monopolistic hold without first going to bed with it. What do you think. Geoff