Globalsources (GSOL)

[Siwei Zhong]

received the following email from a member and I would start a
discussion of GSOL here:

"I have read quite a few of your articles. They are quite good! Will
you be conducting a follow up article on GSOL based upon they turned
down the HC acquitision.

I'm curious to see if you view this as positive or negative. What do
you think GSOL does with the cash on hand if they do not do an
acquisition?

Is GSOL themselves an acquisition target?"

MY VIEW:
share price of HC has been dropping ever since part 1 of the deal was
completed. The call option strike price GSOL entitled to was deep out
of money and from there I knew the deal won't be completed.

Adding to that there were 2 senior managment of HC left including the
CFO.

My feeling of HC is negative from all things I observed, the annual
report was poorly prepared with nothing disclosed (typical of HK GEM
listed company), son of the founder is taking a senior management role
so on and so forth.

I thing it's both +ve and -ve to GSOL.

-ve in the sense that it could not accelerate its domestic B-B biz
development and trigger an immediate revaluation [HC has been money
losing anyway]

+ve as this proved that GSOL managment does not cut a deal for the
sake of boosting share price (only). Apart from the deep OTM option
price i think the major reason was due to HC's failing to meet the set
of milestones.

Yes, GSOL can be an acquisition target itself, I see Alibaba a
natural acquirer of GSOL. Another possible admirer can be TOM Group,
a synergy with its EBAY business in China. TOM after privatization of
TOMO needs story to boost its very depressed share price.

I think GSOL managment team is also looking for a home run, founder
is 65, fair to take his fair share of rewards after 35 years' effort
of putting the whole thing together.

Let's stay tuned and see what will happen after ALI's listing rumoured
to be in 2H in HK, also rumoured to be the largest IPO for Chinese
internet company in history.

[Siwei Zhong]

another very nice chart

http://chart.finance.yahoo.com/c/6m/g/gsol

my previous story about this stock here

http://www.letsthinkchina.com/2007/05/opportunity-to-profit-from-growing.html

[michael k.]

Siwei,

That is a nice 25% or so increase in GSOL from the time of your
initial story until today!

That led me to want to see what else is going on in your model
portfolio because I remember GSOL was in there. But I get the feeling
you have not paid much attention to it recently. When I accessed it
through your original entry introducing it, I saw that it still
contains CAF, even though I think you said in a previous post that you
had sold all of your A-shares ETFs. Also, I recall that you said you
have bought some HSCEI index products. I realize that your own
investments may not be the same as those in the model portfolio, but
could you give us some updated thoughts on the breakdown of your model
portfolio and/or, if it's OK, your own portfolio? Thanks.

On 6月30日, 午前9:03, Siwei Zhong <letsthinkch...@gmail.com> wrote:
> another very nice chart
>
> http://chart.finance.yahoo.com/c/6m/g/gsol
>
> my previous story about this stock here
>

> http://www.letsthinkchina.com/2007/05/opportunity-to-profit-from-grow...

[Siwei Zhong]

sorry that I do not have time to maintain the model portfolio anymore.

i will discuss any new idea I come up with in this discussion group, i
think it's better than showing you my own portfolio, which may not
apply to all of you as we have different investment objectives and
risk apetite.

HSCEI index warrants are HK listed, you need to have HK trading a/c.
Besides, they are not too liquid.

u can check out http://hk.warrants.com/en/home_e.cgi to learn more.

> > > internet company in history.- Hide quoted text -
>
> - Show quoted text -

[Siwei Zhong]

for no reason GSOL has dropped by ~10% these few days.

How would subprime has any impact to GSOL whose biz has nothing
related to it?

I will accumulate more GSOL shares as i dont see any change to its
fundamentals.

On Jul 4, 2:35 pm, Siwei Zhong <letsthinkch...@gmail.com> wrote:
> sorry that I do not have time to maintain the model portfolio anymore.
>
> i will discuss any new idea I come up with in this discussion group, i
> think it's better than showing you my own portfolio, which may not
> apply to all of you as we have different investment objectives and
> risk apetite.
>
> HSCEI index warrants are HK listed, you need to have HK trading a/c.
> Besides, they are not too liquid.
>

> u can check outhttp://hk.warrants.com/en/home_e.cgito learn more.

> > - Show quoted text -- Hide quoted text -