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Strategies & Market Trends : China Telecom Ltd (CHL) -- Ignore unavailable to you. Want to Upgrade?

To: Chunsheng Zhou who wrote (25)	11/29/1997 10:38:00 AM
From: K.J.Devine	Respond to of 149

Chunsheng: This is good news, the other real good news is China Telecoms ability to attract a huge number of consumers on the mainland. They are also working with Motorola Inc. to sell pager services. China Telcom with their market segment and large cash position looks to be the number one telcom service in the region. Way over the market segment that HK Telecom has. China Telecoms will cause many other communication companies in the U.S. to seek them out for sales advise (like Motorola did) in the region. This is why three major financial houses are bullish on China Telecom, BONY, Goldman, JP Morgan. and we should see many more U.S. companies providing coverage. There are not a lot of good ADR's, but this one is stable. The HK market also feels the same. The stock in HK in 24 day's went from 11.80HK to 12.95HK in a overall down market. The stock in HK continues to be in the top 10 active list from a volume standpoint on the Hong Kong exchange. A breakout is due in this stock on the HK Exchange at any time, once things settle down a bit in HK, which seems to be happening. This company may be one of the fastest growing companies in the world, in a growing industry selling in markets which are just getting tapped. If the wireless market is anything like the market in the U.S., this company's gross revenue in four years should increase 500%. The only bad thing about this company, it's ADR's went public at the worst possible time, the week of the crash and all the ASIA market jitters. However, the stock has remained very stable and I feel that if the stock could survive the past month of trading, it will survive a lot longer. My own personal opinion is, had their not been a market correction last month when this ADR was released, the price of this ADR security would have been in the mid 40's. Now we will just wait a little longer maybe by year-end to get there. However, I doubt the financial community is going to let us buy this ADR at these prices much longer. We shall see next week.