China Fire & Security Group, Inc. (CFSG)

ttortie (30.68) Submitted: 10/05/07 1:49 PM : Start Price: $11.26 CFSG Score: 2.64

If CFSG was trading in China I wouldn't buy it.


If it was trading in Hong Kong or Singapore I wouldn't buy it.


The closer to China, the more speculative the China plays are.


It is trading only in America. I have a rather large portfolio position in it.





A company which could have listed in Asia, command a premium on its IPO & watch its price shoot up has chosen to list only in America. It is differentiating itself. It is asking for respect.





It is not just that it wrote the code, and wrote it so high that multinationals don't meet the Chinese LHD standards (talk about moat!), it is recognised as an industry leader by the Chinese government. When you sell to state-owned enterprises who you know matters.





And when it is ready to go international it won't be an unknown Chinese Fire Safety company, it will be a NASDAQ listed company followed by Wall Street analysts. That will be a looooooooong play of course, and I'm happy to load up while it is still hidden.





Finally, China just created a government investment arm with the mandate to invest overseas. If you had massive reserves denominated in US$ where would you invest? And whose stocks would you buy?

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