Re: Re : Investors Wonder Whether Cogo Will Get Going
yalanand
8/1/2011 3:24:49 AM
Tony,
Thanks a lot for the detailed explaination.
Re: Re : Investors Wonder Whether Cogo Will Get Going
TonyKau
7/31/2011 9:18:01 PM
Yalanand,
They claim to have no direct competitors in their space -- they are a value-add for their clients by efficiently handling normally internal tasks. Driectly off their 2010 10-K:
We believe that we compare favorably with respect to each of these criteria. In addition, while we do not believe that there are any direct competitors of any meaningful size that operate using the same business model as ours, we face indirect competition from the following:
Other technology component suppliers . For each project, we work with suppliers to compete against other technology component suppliers. Consequently, we indirectly compete against our suppliers’ competitors. For example, by working with JDS Uniphase, we compete indirectly against companies such as Avanex and Bookham in supplying optical transmission module designs.
Component manufacturers and distributors . We compete indirectly with component manufacturers such as Epcos, and component distributors such as Arrow Electronics, Inc. and Avnet, Inc., which may seek to expand their product/service offerings to include customized module design solutions. We believe that these large component manufacturers and distributors have not historically engaged in customized module design, and therefore we believe that it is not one of their core competencies.
We may also face indirect competition from customers and suppliers. Currently many of our customers and suppliers do not focus on customized module design. If our customers or suppliers decide to devote more time and resources to in-house module design, the demand for our solutions may decline. In addition, our customers may change their procurement strategy or decide to rely on us primarily for component delivery and not for integration or design work. Similarly, component suppliers may also seek to offer their component products or modules incorporating key components from our solutions directly to our customers.
Re : Investors Wonder Whether Cogo Will Get Going
yalanand
7/31/2011 4:02:35 PM
Tony,
Thanks for the investment Idea. Fundamentals of the stocks looks very lucrative. Could you please list out the companies which are compeititor of COGO ?
Re: A nice place to vacation, but...
Phoenix
7/19/2011 11:29:51 AM
Yes I agree. It does look like a wait and see type of a situation. Thank you Tony for providing some good information about this company. I haven't heard of it either. So it is good to know more about what is out there. I'm still a bit nervous about holding stock from Chinese companies after the recent problems.
Re: A nice place to vacation, but...
tokyogai
7/19/2011 9:02:40 AM
This move in light of the otyher ussues seems to increase the risk in investing in COGO, not decease it. I am guessing there is less oversight with the move as well. I think this is one to sit on the sideline with to see what happens.
Re: A nice place to vacation, but...
TonyKau
7/18/2011 11:09:33 PM
That's a good point, Noreen.
With 77% of the share float held by institutions and mutual funds as of March 31, there is certainly a risk of divesture from Cogo as it moves offshore. Perhaps the recent downward movement on broadly higher volume is caused by this supply/demand issue. Perhaps there is more to come.
According to their filings, actual trading shouldn't be interrupted by this move, as Cogo will continue to trade under the same symbol, but, as you mentioned, there is certainly the risk of some large players moving out to accommodate their holdings rules.
Hi Tony,
Cogo Group will hold a special shareholders meeting next Monday to approve previously announced plans to change the company's domicile to the Cayman Islands from Maryland. The change in domicile will allow the company to list its shares in Hong Kong, but certain US investors will no longer be able to hold the shares.
Given that market valuations in Hong Kong are generally lower than in the US, I'm having a hard time seeing this move as a good thing. What's your take?
Ditto for me that this is the first I've heard of Cogo. I agree that it has a strong Western presence with KPMG vouching for its financials.
Thanks for putting it on my radar screen. Keep us posted!
This is my first time ever hearing about Cogo and I will definitely have to do some more research
Tony,
Too many voices in the market act like they're making a funding pitch - all good news, all the time. I apprciate that you bring in both sides of the story, so on Cogo you do mention concerns about profit margins and cash conversion.
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