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  • savvytimer savvytimer Jul 30, 2000 8:08 PM Flag

    Analysts Turning Negative on Chinese...

    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.

    BTW, I
    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. can
    cling to your dreams of riding these stocks up like
    some rode 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, is still
    heads & shoulders above the garbage stuff like SOHU,
    SINA, NTES and some others in the pipeline.

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    • Ok, let's see 6 months later, if the paper millionair can become a real one :P

      P.S. Calling others idiots can not prove you are not :-)

    • 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

      -------GOOD LUCK!

    • 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.

    • When you said people were stupid, I did not feel you were smart.

      Take it easy.

    • 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.

      Its a
      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

      • 1 Reply to asianguru888
      • 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.
        Raging Bulls
        seem to have more updated news than Yahoo.
        There is
        lots of talk on SI also.

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