No License = Compensation $$$ = War Chest for takeoverSino...

No License = Compensation $$$ = War Chest for takeover

Sino shareholders happy in the service
By Rebecca Urban
March 16, 2006

THE stratospheric rise of Sino Strategic International has finally caught the attention of the Australian Stock Exchange, after shares jumped about 35 per cent in a week.

Never mind that the stock price has soared from about 18¢ this time last year to yesterday's close of $5.34 — an almost 3000 per cent rise. Or to put it into perspective, one's paltry $1000 investment in the gaming and media outfit a year ago could now be traded for a small European car.

It was the usual drill. The exchange's watchdogs wanted to know whether there was any information that had not been announced yet that might explain the recent feeding frenzy. And there wasn't, of course.

It is worth noting, however, that Sino managing director Richard Li has been out spruiking his wares to Melbourne and Sydney institutions this week, which has been blamed for the sudden spike.

The punters in this tightly held company don't seem to mind one bit that it has not returned a profit since 1998, as all eyes are on China, where it operates Keno and other lottery services in Shanghai.

While China's existing lottery-based gambling market is valued at more than $US8 billion ($A10.9 billion), most forms of gambling are still illegal and huge growth is anticipated.

And having gaming barron Bruce Mathieson and former Tattersall's general manager Peter Gillooly sitting on the board has no doubt added to the interest.

So, it goes without saying that Sino shareholders are a happy lot. And that includes chairman Theodore Cheng. One of his interests, the aptly named Eternal Profit, made a $16 million killing in January by selling 5 million shares it subscribed to for just 60¢ in November.