Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : CHDX--US China Industrial Exchange -- Ignore unavailable to you. Want to Upgrade?

To: Ron Conty who wrote (22)	2/27/1998 7:57:00 AM
From: Ron Conty	Read Replies (1) \| Respond to of 77

[March 1998 issue of Success Magazine, page 65, gave some examples of "Major Failures". One example given was:] "The $2 million company leased computers, and it also did computer consulting; the result was an inherent conflict of interest...." The flaw was stated as 'no clear focus.' "The company was schizophrenic," said the ex-owner. "It should have been one or the other." Hmmm..., one ponders how a Chinese hospital operator would feel, when a major hospital equipment supplier from the U.S. openly competes with him by setting up shop right there in the same town (actually in several locations throughout the country), touting a "state of the art" clinic with millions of dollars of equipment. That would really convince the guy to buy more equipment from this supplier, right? No question the competitors will try to make hay with that sort of information. It may not be politically correct to ask such questions, but I think investors are entitled to know whether personal lifestyle choices of the senior execs (who have de facto total control of the company by virtue of their super majority Class B Common Stock holdings) might have affected the decisions made on behalf of the company. I speculate the following and ask you to draw your own conclusions: 1. Chinese spouse (?? I was told, but I have no personal knowledge). 2. Couple elects to live in China most of the time. Would need good local medical care. Build a clinic. 3. Children goes to school in China (?? I believe the 1996 SB2 stated that the company is paying for the tuition of children of the senior exec., though it was not clear where). Need a school? No problem. 4. The floors above the clinic in Beijing is rented to the International School (could it be that the children go there?). There is no doubt that arguments can indeed be made, that if these execs have the stated needs in China, other expats must also have the same needs. But the question is whether the market is big enough to warrant the millions of dollars in fix asset investments. The forte and expertise of the company (at least before the IPO in 1994) was in selling inside and into China. The company had no expertise in running clinics. Why was the $10 million raised in 1996 not used to leverage additional financing to sell and trade more? Was it a wise choice to instead tie up the money in long term leases and medical equipment? But then again, if my shares speak louder than yours (6 votes to your 1) and I have a cozy board (major company execs., father of major company exec., etc., constitute a majority on the board), who can or would challenge my decisions? And you wonder when the good days are coming back? All that doom and gloom aside, there is no doubt that China presents wonderful opportunities for many years to come. Once can only wish that our fearless leaders would have a clue and stay focused.