Dutch Trader

4 Comments

    • Universal Travel Gets Moving Online [view article]
      Old news, using copy and past. Not very original.

      Why you don't call them and make a sound investment report of the company?       Apr 28 07:03 AM
    • UTVG.OB Makes Impressive Gains Online [view article]
      Chinese stocks are low for a reason. Most of them are hold by insiders so real influence of outside investors on business is limited. Also these stocks are thinly traded, causing difficulty to buy and sell. That is why institutional investors or mutual funds don't pay a lot of attention to this kind of stocks.

      Another reason is that accounting rules in China are different than in the U.S. or Europe. Those companies have historically not adopted our management and financial reporting concepts and practises, which includes strong corporate governance, internal controls and, database, financial and other control systems.


      Apr 25 07:20 AM
    • Bullish on Chinese Microcaps [view article]
      Why you brag about your education? Education doesn't make you necessarly a good investor. I also have an economic title in the Netherlands but what is it worth if you don't make an basic analyse of the companies.

      I agree with you that there are some nice opportunities, such as Lotus (LTUS) and China 3C Group (CHCG). But the mentioned companies are low for a reason. Microcaps are usually thinly traded, causing difficulty to buy and sell. That is why institutional investors or mutual funds don't pay a lot of attention to this kind of stocks.

      Also accounting rules in China are different than in the U.S. or Europe. Those companies have historically not adopted our management and financial reporting concepts and practises, which includes strong corporate governance, internal controls and, database, financial and other control systems.

      Also the fact that insiders own a majority controlling stake in the company is a negative aspect, because outside investors have no influence in the company's business decisions.

      Of course there are other factors that have to be said, but I would refer you to the 10-K reports of the companies you want to invest in. A good and sound analyse of the company's financials is necessary if you want to invest in stocks.

      I have to agree that more and more Chinese firms adopt the Western style of reporting. This is a process and will take some time.

      Personally I am interested in Lotus and China 3C Group, of course for a small amount. Book values of both companies are attractive and at this moment I can't see any unforeseen material implications in their way of reporting.

      For more information about listed companies in the U.S. read carefully 10-K's etc. at sec.gov       Apr 22 03:25 PM
    • Garmin Dominates GPS Market – But Stock Still Takes a Big Hit [view article]
      I think navigation device maker TomTom (NYSE/EURONEXT AMSTERDAM) is a better play than Garmin. The company is in the process of acquiring Tele Atlas (a digital mapping and navigation solutions company). The takeover has been delayed because of regulations of the EU. The EU has extended its review period for the TT/TA deal until the 21st of May. The EU has not completed talks with the companies about the possible effects of, and necessary remedies for, the deal.

      I think the deal will be approved that TomTom can acquire
      Tele Atlas for EUR 30 per share, cash. The acquisition is an integral part of TomTom’s long-term strategy and
      a rejection by the EU would be a setback for both firms.
      The share price has been under serious pressure during recent months for a number of reasons: 1) Fears that an
      economic slowdown in the EU and US will lead to lower demand for luxury goods such ad navigation devices, 2)
      Fears that the Tele Atlas deal will be rejected, 3) Contrarily, fears that if the deal is approved TomTom will have
      trouble financing the deal.

      Despite that you can still be positive on the company for a number of reasons: 1) TomTom is market leader on the fast growing market portable nagivation devices with a strong brand name and a strong innovation pipeline, 2) Unlike other PND makers, TomTom is strongly developing services that will support its devices and will lead to recurring revenues in
      the future, 3) The 4Q07 results were much better than expected, both in terms of margin development and in sales;
      a positive sign in the current difficult economic reality, 4) The Tele Atlas deal will add value to TomTom. Aside from
      the strong organic growth by both organizations, there will be significant cost reductions and other synergies emerging
      from this union.

      Though the announcement of an extended review period will probably renew speculation that the deal may be in
      jeopardy, there is no material reason to doubt that the deal will indeed be successful. The Tele Atlas deal is crucial
      for the long-term vision of TomTom.       Mar 28 08:57 AM
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