Hongguo

Re: Hongguo

Postby la papillion » Sat Jan 23, 2010 10:19 pm

Hi mw,

I think their branding is not strong in the first place, thus when the competition heats up, they have to end up selling cheaper and cheaper, resulting in lower margins. They opened up shops after shops, increasing the revenue tremendously, but the profit did not catch up due to lowered margins.

Something like global voice eh? More revenue did not imply more profit in the end.
An investment operation is one which, upon thorough analysis promises safety of principal and an adequate return - Benjamin Graham
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