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amitkoth - Thu, 21 Dec 06 :

Yes, this is what's so great here. Everyone will hold theirs, and there's only 5 million shares issued. To sell a company like this (if it posts superb numbers) is simply crazy. Warren Buffett lesson 1 - "My favourite holding period is forever"

It doesn't take a genius to figure out what will happen next, especially since the base of shareholders is diversifying.

The other thing is my previous point - they did not issue shares (around 3-4%) of their company to raise money. They issued them JUST to raise profile. The owners desperately want to hold on to their company, since it's generating wild profits and can grow its non-China sales almost without limit. China has the labour, it's cheap, and taxes are nil for two years (as CR posts above). However, they had to let a few shares onto AIM because they needed the international profile. So IMHO this is a very rare opportunity for a company valued very reasonably, coupled with a very tight market.


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