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Chinese online financial information provider China Finance Online (ticker: JRJC) reported Q3 2005 results late last week. The following is a comment from a reader of The China Stock Blog:

Notable events since JRJ went public:

CEO left the company
COO left the company
Declining subscriptions
Declining average selling fees

So, what does the company do with all of its cash generated from its IPO? It proclaims that it’s stock is undervalued and spends $10 million on a stock buyback program. The other thing the company does is increase spending on a marketing campaign. This marketing campaign does not help reverse their declining subscriptions. However, it increases network traffic to their site, which in turn generates more advertising revenue. Management seems very excited by this phenomenon and states that they are “putting a lot of effort in this direction

Source: "The Company Should Never Have Gone Public" (JRJC)