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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (24902)	9/28/2006 12:35:46 PM
From: MCsweet	Read Replies (1) \| Respond to of 78750

Paul, In addition to GAI (an old friend I'd given up on years ago), here is another Chinese cash-rich blast from the past, MHJ. The board made money on this as a net-net play a couple years ago (at least I did --- I think brinks posted it as one of many on a net-net screen). MHJ is a pearl/jewelry company. It has gotten cheaper again with lots of cash on the balance sheet. It also makes money. I think lack of trust and understanding of management is a major issue. MHJ has a complicated corporate structure (MSIL a Hong Kong subsidiary), and I still don't fully understand why they don't use the cash for buyback or dividend. However, today's conference call may be of interest as they try to explain these mysteries. They don't explain things convincingly, but at least they seem to understand shareholder dissatisfaction and are making some efforts --- I give them some credit for trying. So I wouldn't bet the farm on this, but think it is worth consideration for a small position. MC