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

To: Spekulatius who wrote (35969)	11/18/2009 6:58:27 AM
From: Madharry	Read Replies (1) \| Respond to of 78704

Those are good questions and I think one should be careful with chinese companies as well as with american companies. they all have warts. Im guessing that it may be a question of cost and access to capital markets. It seems to me like gfre management are going about things the right way. Minco gold listed in canada, and melco listed in hong kong. I dont know that the accounting for one is better than the other. As far gfre goes my guess is that they want to establish and international reputation and they plan to become a much larger company over time so they will need more access to financing. Also If I were running a company I would not want to be so dependent on being on the chinese stock exchange, if i had another choice. I speculate that the companies who want to delist because of sarbanes oxley are companies that will not be looking for financing anytime soon and frequently have a controlling shareholder. as far as problems with unethical accounting i have been burned by that stuff with us companies many more times than i have fingers going back to the late 60s when land development companies were recording sales after getting 5% deposits. Even now it seems that every year there is some new questionable accounting gimmick. and lets face it appointing someone from Goldman Sachs to be head of enforcement for the SEC doesnt inspire confidence that theres anyone on the ranch protecting shareholder interest.

To: Spekulatius who wrote (35969)	11/19/2009 10:16:48 AM
From: gcrispin	1 Recommendation Read Replies (1) \| Respond to of 78704

I think you bring up some excellent points of discussion. My views are similar to Madharry, but I'll give it my own spin. I think you have to hold your nose, in general, with all microcaps. Generally, they're undercapitalized and run still much like a private company. I agree that Chinese companies dilute too much. One of the reasons is that they always want to take more marketshare. No dividends despite good earnings is all too common in American micro-caps. I think they list in the US because that is where the money is. The per capita networth of a US investor is much higher than that of a Chinese investor. In 2008, there were 300,000 high-net-worth individuals (HNWIs) in China, with investable assets worth at least RMB 10 million (USD $1.5 million, ?1.1 million) . Investable assets per capita are approximately RMB 29 million (USD $4.3 million, ?3.2 million). Their aggregate investable assets equaled RMB 8.8 trillion (USD $1.3 trillion, ?1.0 trillion). In spite of the global financial crisis, we predict that the number of Chinese HNWIs will reach 320,000 in 2009, with total investable assets exceeding RMB 9 trillion (USD $1.4 trillion, ?1.0 trillion). By the end of 2008, 80 percent of Chinese HNWIs lived in 11 provinces and cities. More than 50 percent of China's wealthy were clustered in 5 provinces: en.wikipedia.org I suspect that the ability to build wealth in the United States is a great allure to Asian companies. A bit dated, Tom Friedman talked about Bill Gates' rock star status in China. I think a Chinese company has made it to the big show when they list in America. On an aside note, I don't see the deals on Chinese mircro-caps that existed six months ago. Many were selling at 2,3,4 times earnings. Many are suspect and it takes a great of sifting to find something that you think will succeed. I've been much more of a seller than buyer the last month.

To: Spekulatius who wrote (35969)	11/24/2009 4:11:43 PM
From: Paul Senior	1 Recommendation Read Replies (1) \| Respond to of 78704

Oops. Not a good day for those of us who are WH (WSP Holdings Ltd) shareholders. finance.yahoo.com For now, I'll continue holding, neither adding nor subtracting.