All good points. The bad press over BSPM advertising practices really got in the way of a big price move that was about to occur. Overall many of the China names are slowly beginning to understand what U.S. investors crave: EPS growth and shareholder friendly moves.
The CFO move for BSPM was essential. Not sure if you knew this, but the previous CFO was also the CFO of CPQQ. How can a CFO 100% fulfill duties to two companies?
BSPM is in the camp of many ChinaHybrids where EPS growth will not start to occur between the 2010 third quarter and 2011 first quarter.
In normal circumstances now would be the time to consider some names, but there is so much psychological risk out here now:
1. Real estate bubble
2. Government wants to slow growth
3. Labor issues
4. Quality issues.
None of these concerns existed in 2009.
Whether legitimate or not, in the end, the space needs to get past the quality issues for stocks like BSPM to flourish. I have formulated a plan that companies need to begin implementing that i am sharing with IR firms and CEO's.. Let's see where that gets us. If quality is resolved, we could be set up for a pretty incredible run.
Maj