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Mindray Medical International

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OK, enough about the Home Inns (HMIN) and New Oriental (EDU), both of which are well known consumer brands based in Shanghai and Beijing respectively. On Sept 26, a not so well known medical device company based in Shenzhen (by Hongkong), did IPO on NYSE and it was well received by the investors. The company is Mindray Medical International, ticker symbol MR. It’s not the first Chinese medical device maker listed in the US. China Medical (CMED) came to NASDAQ about a year and half ago. But this MR is much bigger.  I looked at its F-1 form, and it seems like a solid company.

mindray logo picture 

Some key numbers:

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Stock Lesson VII

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Next Microsoft. Next Bill Gates. Next Google. Next…

We all want to get the hold of “next big thing” before it becomes real, don’t we? Think about this, the stock of Cisco, the networking and communication company, increased 73 times from 1990 to 2000 in 10 years. The Microsoft stock’s performance was similar. 

From time to time, when a young company came up with some cool product or service, and performed well in the market and financially, people will praise it as “next Microsoft”, and think its founder will be next Bill Gates. The reality is, except Google, no company has come close to Microsoft in past 10 years. But sometimes we innocent investors (like me) fell into this trap.

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New Oriental and Yu Minghong

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Amid all the craziness of Home Inns Ru Jia’s IPO, another well known Chinese company did IPO on NYSE on early Sept, that’s New Oriental Education group. For Chinese students seeking study abroad in the US in 1990s, New Oriental is nothing new. Although I have not attended their classes because at that time their classes are still limited to Beijing, I did got the vocabulary book nicknamed “Hong Bao Shu”. The book was edited by Mr. Yu Minghong, who also founded the school. From what I heard, when Mr. Yu speaks in the classroom, it’s pretty much like a rock star performs in the stage (or Bill Gates speaks in the stadium for his Microsoft employees).

I did not pay enough attention on its IPO because I was in China at that time. Now I have a little time to look at its F-1 forms, quarterly report, web page, listen to the conference call and reflect what I heard about the English education in China. I believe it is a good company and its stock may be a good long term investment. Compared to Home Inns’ position in China, I think it has a more dorminant position. But there is negatives too: it’s very dependent on Mr. Yu, both as owner (to set vision) and as management (execution, operation), I don’t know how can he manage that? Also it is not Wall Street friendly as Home Inns because Mr. Yu is not known to Wall Street (unlike Home Inns founders, they already made name from Ctrip).   

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Bubble is building

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Home Inns (Rujia, ticker symbol HMIN), which is due to IPO this week, is getting $ 1.0 billion orders for its $ 95 million listing (7.9 million shares in the range of $ 10 to 12, with over allocatement option of 1.185 million shares). See the article from Reuters here. Does anyone has the order vs. offering ratio (a.k.a. supply vs demand) for Baidu (BIDU)?  

As of now I still don’t know the exact date of its IPO. But I saw this lastest SEC filings. From most sources it appears Oct 25 Wed is the debut date.

If you know Chinese, here is the coverage from Sohu.

rujia home inns

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Stock Lesson VI

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It’s the earning season again. Many companies already came out with their 2006 Q3 (July to Sept) earnings. Some are good (Apple, eBay and Google), some are bad (Intel, Motorola and Yahoo). Some people are happy because they bought Google before the earning; some people are not because they bought Yahoo…

I don’t know why people want to bet on the earnings. But I played exactly this earning game when I was new to stock market. And the results is not pleasing at all. Betting on earning is pretty much like “guess the coin toss” because we as outsiders don’t have any edge. But for those brave hearts who really can not resist the excitement, here is my lessons and suggestions:

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