In late April, FOX's Neil Cavuto interviewed Bob Froehlich, Vice Chairman of Scudder Investments, and Dani Hughes, CEO of Divine Capital Markets. Here is what the two had to say about wireless operator China Mobile (ticker: CHL):
Comment: If he is investing in China Mobile, I hope Froehlich knows that text messaging has been big business in China for more than two years. And for all those wondering why shares of government-controlled China Mobile have been so stagnant despite bullish calls from analysts, you might consider Dani Hughes' point. There is so much uncertainty in both the near and long term regarding telecom sector restructuring, currency revaluation, and of course, the whims of the Chinese government, that many investors are remaining on the sidelines. There are investors, however, that are concerned with China Mobile's slowing subscriber growth.
Bob Froehlich: I'm sending my money overseas to China Mobile (CHL).
It's the world's largest cell phone provider. They have a customer base
of 200 million subscribers. They have a 65 percent market share. I
don't think the next big thing is the Internet. I think the next big
thing is phone text messaging.
You've obviously been following my daughter around because that's all
she's been doing. Dani, you don't like China Mobile, right?
Over the long term, we don't know what's going to happen in China.
We've been talking about China for the last 15 years and really only in
the last 2 years have we seen some real movement.