Categories
Stocks

Heelys one month after crash

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Last Updated on September 18, 2007 by stlplace

I normally don’t participating in stock discussion forums. But this one titled “company and stock did not connect” at Google Finance caught my attention a month ago. So I went ahead and commented:

Original comment: why is the good performance of the company disconnected from the horrible performance of the stock? When a company is more profitable than its previous quarter in the previous year, the company is more valuable. Anyone have any ideas?

My comment on Aug 16: The problem with Heelys is its prospect. In stock we not only look at its past, more importantly, we look at its future. With Heelys, the future is not clear (at best), not so good (in reality).

The inventory issue is not isolate problem. Their sales people may have pushed too agressively with the retailers for the “back to school” season. Now their typical strong Xmas sales is at risk.

Categories
China Stocks

Secular growth, Mindray, New Oriental

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Last Updated on September 20, 2007 by stlplace

I was looking for a secular growth stock in China. By secular growth I mean the business grows continously without the normal business cycle. One benifit of secular growth is it usually does not go up or down a lot as economy cycle does. A side benifit of this is we (investors) can sleep better in the night 🙂

The opposite of “secular” is “cyclical”. For example, we normal think the following industries are “cyclical”:

1) Oil, metals and other commodities;

2) Real estate (we have seen the downturn in the US housing market lately);

Categories
China

Bracing the typhoon

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Last Updated on September 18, 2007 by stlplace

It is said the largest typhoon in a decade, will hit Zhejiang province and Shanghai on tomorrow evening.

Heavy rain already came today.

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