A2M $3 Party, page-2143

Of course I am always looking at both sides of the fence an the pros an cons
Of everything I invest in that's what good investors do

In case you an others missed it A2m is a fantastic company who has done well to this point in a very short space of time they have entered the 200 an increased profits at a rapid rate

I buy the milk the ice cream an consider them to be vastly superior I have stated this over n over here many times

However they are now trading at a multiple that is ripe for the shorters

What I like to do is bring balance an temper enthusiasim when I see people saying ridiculous things like A2 will be as big as coke it will be 5.40 I ask myself the question how would hedge funds view that type of hot money

They will view it as they did BAL I as a holder have a right to question what the board are doing in my view the litigation could become a costly mistake

My biggest concern going forward is chinese regulation changes there is massive pressure from within the local chinese business community for policy changes to slow down the market share grab from OS Coys operating in China

Money talks in China they are masters at altering the game as we have already seen that is the biggest threat to all COYS selling into China regulation an extra costs to do business which ultimately destroys margins

If you don't consider the key risk factors Im not sure how one can make an informed decision of hedge thru diversification such as the ability to short or hedge thru other options

Chinese commerce will NOT just allow Australian companies to come in an take as much market share as they want

They will demand change extra tarifs extra labelling you name it they in my opinion will lobby to the cows come home to make it hard as they already have

It's a very very complex place to conduct business China nothing is ever easy an they can turn on you in s blink

Espionage at an industrial level is also a key risk in China there are many risk factors selling into China

The rewards are huge but if the local business community feels threatened they act so it won't be easy expect the goal posts to shift in China adding extra costs

Anyone who thinks it will be plain sailing is fooling them selves an should factor in the risks in my personal opinion