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

To: Jurgis Bekepuris who wrote (41989)	3/27/2011 3:04:50 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78705

Jurgis, maybe our own point of views doe not change but we may influence others, which is in a way is the purpose of such a board. I am interested in this situation (right now as an observer) because I think some interesting investment opportunities will come out of this, I believe a substantial part of the Chinese RTO will eventually be proven fraudulent but that means there a some that will be legit do. if the market treats them all the same and the legit ones go down, then there is money to be made here on the long side. The problem is that those RTO that I have the most confidence in like JST are not much affected by the current malaise, so maybe the market does no who is legit and who is not. You may well be possible that the Chinese companies cannot do buybacks, because the cash sits all at the operating subsidies and they cannot get it out to the holding level. This is certainly true for dividends where RTO need to ask the government for the right to pay dividends (note that JST does pay a smallish dividend). That also begs the question why GFRE's management talked about buybacks if indeed they are not able to execute them due to lack of cash at the holding level. Doesn't make sense to talk about something that cannot be done anyways unless they just want to get the stockprice up without doing anything really.