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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (67127)	8/8/2005 11:56:55 AM
From: Slagle	Read Replies (2) \| Respond to of 74559

TobagoJack Re: "China" I just spotted at the local Walmart evidence of an important new penetration of the US market by a China product. Sitting there in the garden center was a stack of small 3KW gas generators from China. But what caught my eye was the little single cylinder gas engine; a real nice copy of the Briggs and Stratton/Vanguard (symbol BGG) style overhead valve engine that B&S put on the market here back in the mid 1990's. Now as far as I know these Briggs engines are made here in the US, or at least assembled here. This is the very first Chinese gas engine I have ever seen here in the US. If more are coming this will spell real trouble for BGG as they are the guys with the cheap engine in the US market. Lately I've heard several CNBC types pumping BGG stock and that little engine sitting in the Walmart store might be the reason. Looking at the chart I'm thinking maybe a good short. <g> I've wondered why you never see any Chinese gas engines here. The big sellers of these things like Harbor Freight and Northern Hydraulics have a whole range of the things with the top of the line made in Japan hy Robin, Honda and Kawasaki. Cheaper are the US made engines by BGG and Tecumseh. But nothing from China. In Asia you see lots of Chinese engines. You see the little air cooled diesels that are used on the "Chinese walking tractor". And you also see little L head engines that are a Chinese copy of the old USA made Clinton from the 1950's. Mostly you find these in hardware and fishermans supply stores and the little "Clinton" style engine is used for the one or two man outrigger fishing boat used by the squid and net fishermen. But you never see them here. There could be a quota of some sort and I know that now there are some emissions requirements but this is a fairly recent thing. But this China BGG copy looked like it has all the emissions stuff. Next it will be Chinese push lawnmowers. Slagle