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

To: Heretic who wrote (399)	4/28/1998 4:44:00 PM
From: Tom	Respond to of 457

Reed: Thank you for the press link. A bit more on Ek Chor China. I at one time moved in and out of Ek Chor China Motorcycle. That must have been about 18-20 months ago. It was about the time that Georgey Soros began his China Infrastructure Fund. (Just read last week where China either refused or shutdown one of Georgey's "philanthropic" efforts.) I had no intentions of going long w/ Ek Chor, but wanted to bring some income for East Asian issues where I did desire that type of position. The individual investor, as well as some inexperienced fund managers, must have been feeling somewhat savvy at the time and decided China was the right move. (The number of shares being moved was too large for it to be individuals trading.) It was amazing. One could make money in either direction -- up or down. You could tell just by the movement of the stock that virtually no one was aware of exactly what sort of situation Ek Chor was in. It must have been whimsy. Had anyone the current information on the company they would have known of the cycle glut in China, and other issues: funds afforded to the new small engines facility in Thailand, et al. Not that it was/is a poorly managed enterprise. It is not. It is in fact a highly efficient operation. The marketplace was just saturated w/ the product. The state-owned cycle manufacturers were rolling them out faster than what the market could absorb them. Didn't matter that Ek Chor produced a better machine. Ek Chor China Motorcycle will be one worth keeping an eye on when, and if, the China SOEs are forced to compete.