Analysts are turning negative on Chinese
They finally did studies, crunched nos and figured
1) advertising revenues will be v. slow since people
now know that most net users are v. young and have no
2) e-commerce will be v. slow to take off. Chinese
have no credit cards and debit cards are just
beginning to emerge. Also, the young folks on the net have
little to spend. Additionally, given the relative
absence of the rule of commercial/business law, most
people are scared to buy stuff on the net.
Also American analysts are beginning to realize that
the Chinese gov't is viewing net companies in China
(almost all funded by American $) as a good source of GDP
and employment in an economy that is in shambles. US
investors pouring their $ into vaporous net companies has
become an important part of the economy.
heard from Chinese friends that young Chinese working
in AMerican-funded net companies are living high off
the hog. From using bicycles as the prime means of
transportation, they're using chauffeured limos and living in
luxury housing (with rents of around $3000 to $5000 US
dollars a month) usually reserved for wealthy foreigners.
That's how your $ is being used. If you don't care about
this, you must care that flagrant spending by fledgling
companies is almost always a sign of imminent bankruptcy
and failure--in any country.
Many Chinese think Americans are being "hoodwinked."
Young people working in net companies in China wink at
each other all the time when they talk about "sucker"
Americans bidding up their websites with no earnings,
hardly any revenues--while they laugh all the way to the
bank! Many can't believe how people will pay them tons
of money for something that doesn't and has no
potential of generating any income.
cling to your dreams of riding these stocks up like
some rode China.com up or you can face the
If you can't help wanting to play the China
net/telecom game, the only stocks worth buying are ASIA, UTSI
(both are infrastructural and have real/growing
revenues and earnings) and lastly, CHINA.com is still
heads & shoulders above the garbage stuff like SOHU,
SINA, NTES and some others in the pipeline.
Know too much. at least Zhang is managing a real
company (like SOHU) and real $$$. "FOX...MAN"; said you
are a friend of Zhang GET REAL MAN! he is a
millionair + and you are HERE POSTING! and wasting your
**SOHU is up today; and idiots still complaining about
it. SOHU is still new GIVE IT SOME
Charles Zhang: a big lier?
Being a big
lier and unpopular personality does not dwarf business
success. There are many lier listed companies in china.
keep an eye on the financial statements figures. from
my surfing experience with sohu and netease, i think
netease is worth more than sohu.
I've heard that sohu's senior management are of
many capable people from Sillicon Valley. I also heard
that many of those people left sohu and back to USA.
As I mentioned to a friend back in June 1999 when I
back to Beijing, Sohu's only hope is if Zhang could
keep a group of capable people. Well, let's see if he
could do it.
But I don't think he could do it.
From what I know about him, and from so many negative
stories about him, I know he can not do it. People who
know him well will loose respection to him. People in
Sohu now just use him as a symbol for marketing
purpose. What a patriot Zhang is! But my old friends in
Boston knew that, he was hanging around MIT for about a
year after graduation, then had to leave USA because
of visa expiration.
As I mentioned in post
of #34, Sohu's only hope now is to get Zhang out of
P.S. Zhang is not a visionary, but just a copier.
I was "luckely" to know him back in middle of
1980s at campus. At that time, he was nothing, and I
had no impression of him.
For more I got to
know him was when I was in Boston and had personal
contact with him. I really don't like his personality. I
felt he was immature, but was very bold to make big
lies, since what he loves to do is just show-off. I
know many people who have close look at him don't like
him. That's my personal feeling about him. I don't
think such kind of people who could and should succeed.
I know this company. Look at the people running
the business, its not Zhang (yes I agree he by
himself can't succeed in long or short term). He is a
visionary but not a businessman.
Edwin Chan, Director
of Sales and Marketing, had previously managed his
own advertising agency in Hong Kong, and also was the
managing director for J. Walter Thompson, responsible for
Hong Kong and China. Thomas Gurnee has been appointed
as the new CFO. Thomas held the positions of
Vice-President for Business Development, COO, and CFO for
Chartered Semiconductor, a publicly listed Singapore
company. Alan Li is from Silicon valley.
solid company, with very close interaction from major
shareholders, which you should know who they are.
I guess I enjoyed the freedom you described here.
Sorry if I offended you, but I did not mean to. I just
disagreed with you strongly on your assessment of Sohu. It
is interesting to know that you know Zhang. Tell me
why he will not succeed. Thank you.
You are basically right in describing the
situation. If net companies like sohu, netease in china is
going to make $ big enough to justify only 1/2 of their
current market cap., that's at least 4-5 years later. If
i were in china, i would not dare to disclose my
credit (debit) card no. online. there are too many
I believe short term this stock is heading to 10.
Quite period, along with the momentum with WAP in china
and their strong relationship with Nokia and Pacific
Centuryworks will get this stock going again. CreditSuise will
not let this one fall too low and having Intel as a
majority shareholder will attract certain players.
Watch for earnings and if they start to gain market
share on Sina and if WAP strategy starts to work, it
may jump quite a bit. With the low float, it may be
explosive if momo players start coming in.
seem to have more updated news than Yahoo.
lots of talk on SI also.