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Microcap & Penny Stocks : Gourmet's Choice Coffee Co. - GMCH -- Ignore unavailable to you. Want to Upgrade?

To: Bob Davis who wrote (969)	2/15/1999 6:26:00 PM
From: Smacs	Read Replies (1) \| Respond to of 2161

Hmmm. Interesting site. Less interesting content. The author states quite openly that he doesn't follow BB stocks. I wonder how he can justify commenting on the viablilty of the business plan of a company that he doesn't follow. As for MY critique of his commentary...Yes, the franchise idea IS like that of Starbucks. Of course if only one company can succeed at franchising, the I suppose every company but McDonald's is currently surviving out of sheer luck. (I know McD's wasn't the first franchisor, but bear with me;). His only other comment that I feel like referencing is that of the Chinese prefering tea. Fact is that market testing in China has indicated that the Chinese culture as a whole is trying to become more Americanized. Many Chinese people that I've talked to think that China is ripe for the idea of Coffee shops. Not only that, but they barely hace ANY currently. Not for long, however. Starbucks themselves are moving into Asia too. If "Mr. Blivit" doesn't like the idea of global businesses I'm afraid he's not going very far in the next millenium. -smacs-

To: Bob Davis who wrote (969)	2/15/1999 11:01:00 PM
From: Sparkle	Read Replies (1) \| Respond to of 2161

The Blivit list does not contain GMCH as I checked today 2/15/99 Sparkle

To: Bob Davis who wrote (969)	2/15/1999 11:39:00 PM
From: Smacs	Read Replies (1) \| Respond to of 2161

Here's a response from a colleague of mine who knows alot more about the Chinese market than most of us (certainly me). It's in response to the Blevit list specifically but is encouraging for GMCH in general. ------ Before returning home, I'd lived and traveled in Asia, including China, for several years and most recently (Jan. '99) I'd visited my sister who's presently working in Hong Kong. They're all very different countries with very different cultures but the one thing they have in common is that they crave a western lifestyle or at least the accroutrements of one. It's kind of a love/hate thing where they want what we've got but don't necessarily want to be us. I say this especially with regards to China. The Chinese by cultural nature, and despite enforced socialist ideology, are the ultimate capitalists - for better or for worse for the rest of the world. The clearest example is Hong Kong where money talks like nowhere else on this planet. And what do they do with all that money? They use it to buy Gucci shoes, eat PizzaHut pizzas, drive Mercedes cars and, yes, to hang out in coffeeshops. Coffeeshops proliferate themselves in Hong Kong because they're cool and trendy - same reasons as here in N.America. I noticed, though, that in Hong Kong, there were no big brand name coffeeshops. That's what GMCH will hopefully be astute enough to exploit when it opens up on the mainland. The Chinese love brand names. Forget the mom and pop shops, they want designer labels and fast food. They want what's "in" not what's quaint. Check out Shanghai where ten years ago the women were wearing nylons thick enough to insulate your hot water pipes with. Today they're wearing hundred dollar shears that you and I (well, me anyway) only get to see on t.v. runway models. I invested long in GMCH not because of their franchise possibilities in the U.S. That's great short term but it's peanuts compared to the long view. There are about 1.5 billion people in China - we're talking mainland now, not just Hong Kong. Let's take away the 80% who live a third world peasant lifestyle in the countryside. That still leaves 300,000,000 urban dwellers who right now still don't have access to much and who want access to everything. That's a relatively unexplored market bigger than the United States. They may not all have enough money to buy the most modern VCR's and cars but they can definitely afford a 2 dollar cup of coffee in a western style brand name coffeeshop and they'll dish out that 2 bucks because it'll make them feel like they just joined the first world club. That may be cynical and upsetting to some people but realistic. Coffeshops have been immensely successful in Japan, Taiwan, Hong Kong for years and years so I don't consider them a flash in the pan fad. The mainlanders will imitate the lifestyles of their more westernized neighbours by hanging out in coffeeshops because it's a stylin' thing to do, it's a cheap treat and, of course, to keep face. In this environment, GMCH will, hopefully, make millions for themselves and for us. With regards to the BLIVIT list: People who cloak themselves in a veil of professionalism shouldn't preach opinions on things they know nothing about. To imply that the Chinese don't drink coffee is like saying North Americans don't eat noodles. Sorry for the essay but I figure it's better than just name-calling and going nyaah nyaah nyaah. -fn