GAI Global Tech Appliances up 30% in one day: sometimes the obvious happens… even on stock markets October 18, 2007Posted by deminvest in China stock, GAI Global Tech Appliances, growth stock, investment, my free stock, stock I own, stocks.
Imagine a company owning more cash then what its Market Capitalization. Imagine the same company also owning large real estate in China whose value went up faster than Chinese stock markets.
GAI Global Tech Appliances: what happened to GAI stock? Why is GAI less expensive than the cash it owns? November 3, 2006Posted by deminvest in China stock, GAI Global Tech Appliances, growth stock, investment, stock I own, stocks.
GAI is an amazing cheap company: its stock costs only $ 3.27 and yet it has $3.70 per share in cash… They also hold real estate worth $2.60.
The reason why this company is so cheap is that it is posting losses lately. Their main problems were:
1) price of plastic went up because of oil prices so their costs increased, but they could not increase prices to customers
2) their LCD business was a flop. As soon as they were able to produce LCD products for LCD screens, the price of those products had gone so far down that they had to shut that business unit itself and stop LCD production.