Tuesday, February 08, 2005
FT highlights Chinese Internet stocks' collapse
Here's what the FT's Lex Live column says about the China Internet stocks, and a look at how the stocks have done.
The FT says:
Judging by their past performance, the portals will soon come up with the next hot idea to drive expansion. With few rules to restrain them, they have rapidly created fast-growing, profitable businesses by offering punters a slew of innovative products - from news and ring tones to online games and auctions. All three are now listed on Nasdaq and boast market values of $500m to $1.3bn. But, as the latest episode shows, they can still be blindsided by regulatory change and bullied by semi-monopolies like China Mobile. The rewards of operating in China's unfettered market can be great, but the risks are commensurate.
Quick comment: Mary Meeker's slides titled "The China Internet Presentation" (you can view them here) state: "Lots of opportunity with lots and lots of risk". She was certainly right about the risk.
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Maybe it's time to think about small caps, again.
Posted by: George | March 14, 2005 03:27 PM