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

To: Jurgis Bekepuris who wrote (27151)	6/27/2007 3:03:34 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78742

KONG. It seems to me I don't understand the business model or demand for product. Worrisome is that KONG sells much of its phone products/services through CHL who may or might provide their own competitive offerings or perhaps raise carrier fees to KONG. I see the Chinese phone market growing... I note growth of CHL subscriber base and increase in CHL stock price. Yet now here we have KONG reporting lower earnings and expected lower earnings next quarter again because (as they say) their revenue has decreased/is decreasing. So, CHL is growing, yet KONG is declining. That I'm not understanding. Other similar service provides in the media articles also seem to be down. Maybe it's a structural problem. In any case I find the KONG situation unsatisfactory. KONG cash provides a floor, I presume. Stock might be at a base now; I don't know. For me, I've had enough: I've taken my lumps in KONG stock and have exited. If I see stock decline to cash value, I'll take a chance and reenter, assuming KONG might not burn through their cash as they try to improve their customer offerings, revenue, earnings.