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

To: 18acastra who wrote (5263)	11/10/1998 12:06:00 PM
From: David S.	Respond to of 78817

mgt quality and believability at gai is about the same as custer trusting an indian.

To: 18acastra who wrote (5263)	11/10/1998 2:06:00 PM
From: MCsweet	Read Replies (1) \| Respond to of 78817

GAI I think this is an excellent suggestion as a value stock. If it were in the US, and we knew a little more about the management it would be a definite buy. Unfortunately, it is based in Hong Kong where (a) accounting standards and management accountability are a lot less strict (b) there are currency risks and risks of intervention from the Chinese government (c) we have the general overall Asian crisis That being said, management appears to be taking all the correct steps. (The story about Sunbeam seems reasonable, since Sunbeam is having major problems.) It does not seem wise to build plants right now when demand is weakening. It appears that the company has lots of US cash and no debt, which is heartening in terms of potential currency devaluations. If someone could get some more info on this company (esp. management), I would view it as a good potential high-risk buy. Not something to bet the farm on, but appropriate for a small part of a portfolio. I just wish we knew more about the company.