China Growth Stocks

[RyanW439]

I'm not sure why you think they would wait until he gets all his earn-out shares.. He still owns millions upon millions of shares, so it's not like he won't be getting a lucrative payout by doing a dividend now.. I really don't think he would hold back just because of the earn-out shares. I think at best, they want to hold back because they (like many tech companies these days) want to have cash in case some opportunity comes about. Apple for instance gets a lot of opportunities to buy companies because everyone knows they have a huge cash hoard. It's not that many other companies couldn't pay the same amount and buy these companies, but Apple is so well known for having a HUGE cash hoard that they get the first call in many cases.. I think Chinese companies want to go public and keep a lot of cash on hand for the same reason...that and there is a great deal of respect that having tons of cash on hand demands. I think we'll see a divi or buyback at some point, but my guess is they would like to build there cash hoard up a bit more before doing so, to make sure they can take advantage of any opportunities that arise in the future.