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.

Microcap & Penny Stocks : The Hartcourt Companies, Inc. (HRCT) -- Ignore unavailable to you. Want to Upgrade?

To: X-ray Vision who wrote (191)	3/25/1999 8:58:00 AM
From: Fuza	Respond to of 2413

Saw this news: China offers telecomms concession in WTO bid By Matt Pottinger BEIJING, March 25 (Reuters) - China is offering foreign firms a 35 percent stake in now off-limits telecommunications businesses in an effort to secure membership in the World Trade Organisation, analysts said on Thursday. But foreign telecommunications executives said the proposal would fall flat unless China laid out a concrete schedule that would allow quick foreign participation. ''If the only concession is the 35 percent, they'll never get into the WTO,'' said one executive in Beijing. In its previous proposal, China was said to have offered foreigners 25 percent equity under a schedule that would phase in foreign participation sector by sector over several years. Value-added services, such as the Internet and leased-line networks, would be opened upon China's WTO accession, followed by wireless telecommunications three years later, and fixed-wire service several years after that. It was unclear whether China had agreed to roll forward the dates for introducing foreign participation -- a key sticking point for U.S. WTO negotiators and foreign executives. The analysts said the concession was the handiwork of Premier Zhu Rongji, who is pushing for a WTO settlement with the United States in time for his visit there next month. Zhu has also been behind a drive for domestic competition in the sector. U.S. trade representatives had been holding WTO negotiations in Beijing this week, and telecommunications had emerged as a priority issue, a foreign analyst said. A major concession may also prove crucial to resolving a battle between Beijing and foreign firms whose investments of $1.4 billion have been placed in limbo by industry regulators. Barred from direct involvement in the world's fastest growing telecommunications market, the firms found Chinese partners which established joint ventures with China Unicom, the cash-starved competitor to state giant China Telecom. The joint-venture model, known as ''China-China-Foreign,'' has allowed foreigners to earn money officially on installation and ''consulting'' fees. The arrangements have amounted to de facto foreign equity reaching as high as 90 percent. China's Ministry of Information Industries declared the joint ventures irregular late last year and has said it would settle them one by one. So far, the foreign companies say they have heard no word on the final fate of their investments, but say one possible solution would be for China Unicom to buy out some or all of its foreign partners' investment. By raising the equity ceiling to 35 percent, China Unicom would have an easier time buying out the difference, a U.S. analyst said. But one foreign executive said he doubted China Unicom could afford to do that, even with a higher ceiling. ''China Unicom needs foreigners for the money,'' he said. ''Otherwise, we wouldn't be here to begin with.'' Other executives said they worried China would shut down the joint ventures before a WTO settlement could take effect. ''Any confirmed decision would be good news. Right now we're hanging in the air,'' one executive said. ''What is very difficult for investors is to be in an unclear situation.'' 01:43 03-25-99

To: X-ray Vision who wrote (191)	3/25/1999 9:12:00 AM
From: Ted M	Read Replies (2) \| Respond to of 2413

I can understand your skepticism. I re-read the memo and the news release again and would like to address several of your points. You indicated that HRCT is saying they can basically get a guaranteed value of 80 mill for 30 mill. I actually am not familiar enough with the language being used. The memo indicates that the 'total consideration' is 80 mill, 'comprised of HRCT shares and warrents' and that CIH is to submit to HRCT a company evaluation showing 'a minimum price of 80 mill'. 'Consideration' can mean payment, compensation, or fee. I'm not sure how it is commonly used, but is it possible that this is saying that in addition to an upfront infusion of 30 million, HRCT will be making payment of 80 million? I agree that the use of 6,000 per customer looks way to high given the wage levels in China. As to the number of users, growth to 1 million in 3 years sounds reasonable. Further growth to, say 100 million in 5 more years sounds less likely but maybe not that far out given a population of some 1.2 billion currently. Other than perhaps their overly optimistic projections, can you explain why you believe management is incompetent? I don't know a much of the history of this company, but noticed they, unlike many BB stocks, are showing significant revenues from their other operatons, some which I think are in China. Thanks, Ted