stlplaceObviously the new Vista is creating problems for competitors’ product, such as Google Desktop Search. See this news. I remember four or Five years ago the US justice department ruled to split Microsoft into two companies, because of its monopoly practice. That rule was over turned.
I don’t know all legal issues but I am aware many geeks don’t like Microsoft and its people. Once I went to a UNIX user group meeting in which a Microsoft guy did presentation, he got booed frequently.
Here is the Yahoo Finance experts’ blogs. Among them I like Ben Stein the best, because of his wit and humor, Laura Rowley and Jeremy Siegel are also my favorites. Laura talked about “happiness and money”, as you may know there is a balance between those two. Her background in theology makes her talk more interesting too. Jeremy is a professor in Finance at Wharton, I read his recent book “The Future for the Investors” 2 years ago. His analysis is good, but I don’t like his conclusion: basically he is saying individual investors have no way to beat the market, so go buy the index fund and settle for the market return (about 10% annually). While I think what he said has some merits, I do believe there are chances for individual investor, if one has the time, disicipline and average IQ.
The split day is June 14, Thursday. It has a nice run since last week. I will wait it calm down a bit before adding my postions. Obviously, I missed the buying opportunity about two weeks ago when there were some insiders sellings. It pulled back to 76~78 at that time. Oh well, no rear mirror view for stocks.
A bit reality check, Crocs 2006 Revenue is 354.7 m; 2007 est. Revenue 675 m, a 90% growth, note the company says sustainable growth rate over next few years is 45%. The market cap as of today is 3.64 b (stock closed at $90.97), so the P/S ratio is roughly 5.39. PE (ttm, trailing twelve month, according to Yahoo Finance) is about 44.77, I think it’s fairly valued at this time.
Also as you may know, President Bush was wearing Crocs. You can see a picture of him wearing Crocs (courtesy of CrocFans).
Went to a newly opened Starbucks at Olive and Price yesterday. This is a very nice place, compared to the one at Olive and Craig (much older). The traffic there was OK consider this was Sunday morning.
A lot things are against Starbucks business lately, according to a guest at CNBC this morning.
Bill Gates got Harvard degree finally, 30 years after drop out from Harvard;
Dell announced to sell laptop at Sam’s Club (Major’s comment: too little, too late);
Andy Xie, former chief economist of Morgan Stanley Asia, says the odds of making money in Chinese stock market is lower than casinos (40% vs. 48%);
I received an email from a friend asking me whether New Oriental Eudcation (EDU) will be a good investment or not. I was not warm to it initially, changed my mind and bought it in Jan., sold it in Feb., because I did not know how to evaluate it.
First I want to say EDU is in a very sweet spot in Chinese private education market: English and test preparation. A little background, English is a very important skill in finding good jobs in China these days: from multinational companies to domestic companies, from private sector to goverment, and non-for-profit, all because the increasing interactions between China and the west in last 20 years.
(Update June 10) Today when I visited Galleria Mall, I saw Walk ‘N Roll, a knockoff of Heelys. Unlike Crocs, I think knockoff will take a toll at Heelys’ sale.
(Original June 8 ) Here is the S1 prospectus from SEC web site. It appears the selling shareholders (mostly venture capital) filed on June 7 to unload 8 m shares. My suggestion is don’t touch this skating shoes maker because I don’t like its growth prospect. I already sold all shares which I bought during its IPO debut last Dec.
I expect the secondary will be sold very soon, maybe next week?
Here is a happy Home Inns customer (from Google Finance). On the other hand, here is a not-so-happy Home Inns customer, Kunwei, who (I believe) has stayed in the US and Singapore for an extended period time before returning to China.
So how do we make all of these? Not too much. The thing I want to say is everyone has his/her own criteria. Also things normally acceptable to one person/group may not be acceptable to another person/group, e.g., men normally have greater tolerance over female on cleaness, smoke etc. I think majority of Home Inns customers are happy with the hotels. They got what they paid for: a clean room, and a comfortable bed.
It’s NBA Finals again, if you ever care. I am not a big basket ball fan, but I was fascinated by the business of NBA in recent years, especially when I saw the popularity of the basketball and NBA in China. If my memory is correct, I heard many stars including Kobe, Kevin Gannett and Shaq, visited China recently. The main reason for their trip: to promote shoes for Nike, Addidas, Li Ning (which Kobe, Kevin and Shaq are repective spokeperson).
Here is a link to their 27th annual conference. I only listened to CROX session. One thing come out of it is they just completed a $10 m plant in Dong’guan, China; and they have a design team in China, in addition to teams in US, Canada and Italy. Crocs employs 3,500 people worldwide at this time.
