Year: 2007

Categories
Business China

China E-House IPO

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Last Updated on July 16, 2007 by stlplace

I read from PacificEpoch about the filing. From its SEC filing, here is an summary:

“We are a leading real estate services company in China based on scope of services, brand recognition and geographic presence. We provide primary real estate agency services, secondary real estate brokerage services as well as real estate consulting and information services. We were ranked as the largest real estate agency and consulting services company in China for three consecutive years from 2004 to 2006 by the China Real Estate Top 10 Committee, as measured by the number of transactions facilitated, transaction value and gross floor area, or GFA, of properties sold, and geographic coverage…

We have experienced substantial growth since our inception in 2000 and became a leader in the real estate services market in Shanghai within two years of our inception. We have expanded our operations from Shanghai to 19 other cities throughout China. Our revenues grew from $31.2 million in 2004 to $56.0 million in 2006, representing a compound annual growth rate, or CAGR, of 34.0%, and our net income increased from $5.6 million in 2004 to $18.1 million in 2006, representing a CAGR of 80.0%…”

I noticed its CEO Zhou Xin has 67% of the shares. Neil Shen, the co-founder of Ctrip and Home Inns, has 12% of the stake. Will the “3rd baby” of Neil Shen as good as its siblings? My gut feeling is no. Actually we should count this is Zhou Xin’s “first baby”.

I will post my analysis later on…the following is a picture taken outside E-house office near Zhongshan park in Shanghai

IMG_4660

Categories
China

Starbucks out of Forbidden City

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Last Updated on July 16, 2007 by stlplace

But the controversy is not over. Here is a Chinese article talking about the “culture misunderstanding between China and the west”. On a related matter, people are wondering those “American Express” sponsored boards (in English) should remain.

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Categories
Fun

Heelys: get ready for school season

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Last Updated on July 14, 2007 by stlplace

It appears Heelys is well prepared to the new school season. The other day I saw FinishLine has put the Heelys by the front entrance. Today I saw Sports Authority, and Dick’s Sporting Goods have new Heelys on display.

Heelys has two seasons: the X’mas (winter) and “back to school” (summer). It will be interesting to see how strong its Q2 will be. Because those shoes in the stores now are supplied by Heelys between May to June, I think.

I don’t have any postions on Heelys, as I am looking to buy more CROX on the dip. But it will be fun to watch Heelys Q2 conference call.

Categories
IPO Web

Will VMware be the next Google?

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Last Updated on April 1, 2008 by stlplace

These days “Virtualization” and virtualization software maker VMware are hot in both IT world and the Wallstreet. Jim Cramer pumped it as next Google on his “Mad Money” show on CNBC; guys at “Fast Money” (also CNBC) touted it as the next big thing. Both of them encouraging people buy the EMC (parent co. of VMware) stocks. My take is: whenever someone touted something as the next big thing, be very careful.

So what is virtulization exactly? In simple English, it let a computer to simulate many computers for testing new software, configuration, before formal deployment. This will cut the cost of buying all the servers, setting up a big testing lab etc. I read about the software from a book talking about “how to set up software small business”. This is relevant to small business because their budget is more tight compared to big IT giants like IBM.

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Categories
Business Stocks

McCafe tries to eat starbucks’s lunch

Reading Time: 2 minutes

Last Updated on July 12, 2007 by stlplace

in Japan. I read this news from MSN that McDonald is going to open McCafe stores in Japan. Quote the news:

“The Japan unit of U.S.-based McDonald’s Corp. will launch 15 pilot “McCafe” stores in the Tokyo area on August 29, according to a company release. The stores, the burger chain’s first foray into the coffee shop business, will offer low-priced beverages to lure more families, the release said. McDonald’s said it will consider opening McCafes across Japan in the next fiscal year.

The cafe business in Japan has been shrinking and stood at 1.052 trillion yen ($8.61 billion) in 2006, down 5 percent from the previous year. Still, sales at specialty coffee shops like Starbucks have soared. The Seattle-based coffee chain, which first opened a store in Japan in 1997, has almost 700 stores across the country and saw sales jump 16 percent last year to 78.9 billion yen ($646 million).”

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Categories
401k and Personal Finance

Big Mac, Dollar and 401K

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Last Updated on April 10, 2008 by stlplace

Yum Brand, the parent co. of KFC, Pizza Hut and Taco Bell, had a great quarter yesterday, thanks to the loyal customers in China flocking to KFC and Pizza hut. Maybe because they think the steamed bun in Beijing are unsafe? Yesterday I heard about this Big Mac index (link to Economist) from NPR. This is how a McDonald “big mac” burger costs in a country (converted to USD). In China the index is $1.49, which is low compared to Sweden (the highest): $7.00. Although “big mac index” is not very scientific, it’s a useful measurement tool for the purchase power of different currencies. In reality I think American and Chinese consumers enjoyed a greater purchase power because of the economy of scale, the cheaper manufacturing cost (from China), the infrustructure and logistics go with it.

big mac pic

On the other hand, the “green back” hit all time low yesterday. A dollar is worth less than CNY 7.60 now? Three months ago it’s still worth CNY 7.70. This is not good news for me. But this seems to be the trend. In the short term, it appears Chinese goverment are dumping the US treasury bonds, for the fear of further drop of USD.

I’m thinking to counter this, I need to add more international funds to my 401k. Right now I have 30% international in my 401k, I may boost it to 50% in the near future. The US companies are not always losing in this global economy. For instance, multinational companies like GE, Coca-cola, McDonald, Yum Brands and Goldman Sachs etc. are all benefit from globalization. But at the same time emerging market are growing much faster, and will have a bigger piece of the “global equity” pie in the long run. Developed economies (EU and Japan) may steal a slice from the US too. So the bottom line is I will put more international flavor to my 401k pie.

PS, I have limited 401k experience: I started putting money in 401k since year 2001. For 401k we should think really long term (I mean 20 to 30 years) for retirement.

I am not expert on international economics either.

Categories
Business Life

Whole Food, Wild Oats and Trader Joe’s

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Last Updated on July 12, 2007 by stlplace

John Mackey, the founder and CEO of Whole Food Markets (WFMI), allegedly used pen name “RahoDeb” (his wife name is Deborah) publishing his opinion on the stock at Yahoo Message Board. Here is the link to the mesages.

Of course, the thing really hits news is his comments about competitors, such as Wild Oats and Trader Joe’s. These are now being used by FTC (Federal Trade Commission) to block the attempt take over of Wild Oats. One reason FTC given is this take over will reduce the competition and increase grocery prices for consumers.

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Categories
Life Stocks

My investing journey I: 2002 to 2003

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Last Updated on July 18, 2007 by stlplace

I bought my first stock back in 1994 when I worked for a manufacturing company in Shanghai, and I got to buy 250 shares when the company went public. After that between 1996 and 1997 I did some trade in stocks because at that time the Chinese stock market was very hot, if not as hot as the Chinese market a few months ago. But these are mostly speculations, I know the PE ratios, but that’s about all the financial analysis I did (I think many retail investors in China these days are still at that level, to them stock is not too different from a lottery ticket).

Fast forward to year 2002, I got a little money after I joined the work force. The US stock market was not good. But I did learned more about personal finance, mostly through reading Kiplinger, do my own tax, etc. Kiplinger mentioned this Sharebuilder, a discount broker through which one can buy factional stocks (e.g, 10.5 shares of GE), the idea was a person put a fixed amount of money to buy stocks each month, after a while that amount will grow to some meaningful amount (say, buy a car or something).

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Categories
Business

The Growth of Crocs

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Last Updated on July 11, 2007 by stlplace

1) International: no secret here, as you can count the stores (more stores in India than China), from their web site www.crocs.com (international). The trick here is they expanded internationally at much early stage compared to Nike, etc., considering they are just a few years old. We can attribute partly to the globalization of economy and branding.

CROX_intl

Keep in mind both CEO Ron Snyder and CFO Peter Case have significant international experience before joining Crocs. I think this is more relevant than just paying attention to their stock sales. As long as they can make me (shareholder) money, do I care how much money they make?

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Categories
Business

What is partner exactly?

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Last Updated on July 11, 2007 by stlplace

We all know Wal-mart calls its employee “associates”, today I noticed Starbucks calls its employee “partner”, from its annual report. We all know this is more a sloagn, or public relation, nonetheless it’s good public relation.

Seriously, what is partner or partnership exactly. It’s almost like spouse. According to wikipedia, “A partnership is a type of business entity in which partners share with each other the profits or losses of the business undertaking in which all have invested…The most basic form of partnership is a general partnership, in which all partners manage the business and are personally liable for its debts…”

Robert Kiyosaki, the author of “Rich Dad, Poor Dad”, has an article of “finding right business partner“. Interesting read. Some key points include: common goal, complementary expertise, good chemistry, etc.