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

To: Spekulatius who wrote (986)	7/22/2009 12:09:21 PM
From: bruwin	Respond to of 4720

Yes, I'd also say that new products, which are attractive for the right reasons, would be the key. The only problem is how does one determine, or foresee that, until such time as we see ongoing improvement in Sales, i.e. top line Revenue, in their Income Statement reflecting customer demand. I would also be "somewhat skeptical" of LXK's turnaround until such time as pertinent areas of the company's I.Statement showed ongoing improvement.

To: Spekulatius who wrote (986)	11/18/2009 3:12:27 AM
From: bruwin	Respond to of 4720

As is usually the case, Spekulatius, you do your homework very well when it comes to interrogating companies. That's certainly my opinion. Below is a copy of your recent comment regarding Chinese microcap companies which I thought was a very informative observation. I trust you won't mind if I reproduce it here .... "I don't know about these Chinese microcaps. On the surface they look cheap but they all have issues, most of which seem to be of similar nature. Things that bother me: 1) The dilute shareholders even though balance sheet looks OK 2) Insider and related party transactions are common 3) No dividends despite good earnings 4) Some are using different account in China than in their finanical SEC statements 5) Why do they list at US stock markets at all since their home stock market is vibrant and they have the choice to list in mainland china and HK ? Most other foreign companies are delisting because of Sarbanes Oxley and other reasons. I find it strange that Chinese microcaps don't seem to mind. I have owned AOB on and off. Right now I am in "off state" after reading Ascensio's article in Seekingalpha <ng>. There was this strange transaction a year or two ago where they bought a conference center and Ascensio claims that they bought shell companies from related parties this year. You really would need to watch this stuff. If anyone has found a microcap with decent management that cares about shareholders, I'd like to know it. So far the ones that I owned were all off the "hold the nose" kind, except maybe WH."