When you look overseas you often find some unusual, if not outright strange, stories. China Dongxiang Group (OTC:CDGXY) (3818.HK) may just take the cake, as this sportswear company apparently isn't very interested in being in the sportswear business.
Although China Dongxiang owns a relatively popular sportswear brand in China (Kappa), management no longer seems committed to building the brand. Instead, management likes to take the company's cash and invest in other companies and investment funds, most having little or nothing to do with sportswear. Apart from a small stake in Alibaba, management has shown no particular skill with these investments and it seems unlikely that they are going to pay out the surplus cash as a dividend...
Only subscribers can access this article, which is part of the PRO research library covering 3,617 different stocks.
Growing numbers of fund managers and other investment professionals subscribe to Seeking Alpha PRO for equity research that is unavailable elsewhere, so they can: