China Growth Stocks

[derek2000]

Buybacks - Not just Chinese companies. Not just small caps either. I remember days when APPLE, GOOGLE, Intel, MSFT .. all have money that can buy small countries, yet none of them give out dividends or initiate buybacks until their business slowed. Ooops, GOOGLE and APPLE still do not like to give back money to shareholders.

What I am tried to say is that CEOs have very different needs than day traders. Protecting their jobs maybe one of them, but seeing opportunities that we may not be privileged could be another.

I suggest to have some broad perspectives. If you start with an assumption of fraud you could see it everywhere. GOOGLE tried to buy a small company call Groupon for a cool $5BBBBBBBB. Must be some kind of fraud to enrich themselves using shareholders's money. For god's sake, Groupon was formed barely two years ago with $1m. LOL.

"Buybacks - As I've said before, Chinese companies don't like to give money back. Those cash balances represent power in China, and they also represent an enduring guarantee that a paying job will be available for management come hell or high water. Managements don't seem to want to give up either. Very frustrating."