Zeev's Turnips Patch-No Politics (ZEEV)

[fabian]

JST stocks split. The management is aware that
it's stock is high priced numerically compared to other S.C. China stocks and know most of their shares are still owned by small timers who are somewhat affected psychologically by "high" numerical prices.
They have probably been thinking about it for a while and with the stock sliding, they figured, why not. [probably hoped it might offer a bit of stability to the stock price and stock splits are generally a sign that things have been going well, so it is of some comfort to many of those who are holding it].
Practical effect?
Very little.
If the stock were 70% owned by institutions, we'd advise them not to split it...but it really doesn't matter at this point.

Fabian

We're far more interested in their margins. Earnings last quarter were fantastic but on lower sales. Their margins expanded because their cost of raw materials dropped more than their [selling price X volume of units shipped =] gross sales dropped.
If sales come in flat or lower but material costs increase, margins will go down and the earnings will take some hit.
The market would not be pleased.
Not absolutly sure but we think we read back when that the co. has done some hedging to lock in part of the lower raw material cost.