Comments on: "Number One Tier Two Monster" http://www.stockgumshoe.com/2007/08/number-one-tier-two-monster.html Frustrated or intrigued by email teasers from investment newsletters and advisers? We solve them and track their performance here ... so stick around, participate and subscribe (it's free)! Sat, 21 Nov 2009 04:01:25 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: ctripper http://www.stockgumshoe.com/2007/08/number-one-tier-two-monster.html/comment-page-1#comment-2935 ctripper Mon, 12 May 2008 07:38:21 +0000 http://www.stockgumshoe.com/?p=138#comment-2935 I have stayed at these "7-11-ish" convenience hotels in China. They are found in all Tier-2 cities and in Shanghai/Beijing, there are up to 20 outlets for each chain. Competition-wise, this is a low-entry industry with many players including Motel168,Greentree Inn,Super8,JingJiang Inn just to name a few, normally clustered around transport hubs in each city. There are a couple of these hotels just beside Shanghai Pudong airport. So it boils down to efficient execution and pure volume ... assuming escalating China property prices do not junk the whole equation. Interesting interview from owner of one of these chains - http://www.998.com/websiteui/en/news/other/a38.htm I have stayed at these “7-11-ish” convenience hotels in China. They are found in all Tier-2 cities and in Shanghai/Beijing, there are up to 20 outlets for each chain.

Competition-wise, this is a low-entry industry with many players including Motel168,Greentree Inn,Super8,JingJiang Inn just to name a few, normally clustered around transport hubs in each city. There are a couple of these hotels just beside Shanghai Pudong airport.

So it boils down to efficient execution and pure volume … assuming escalating China property prices do not junk the whole equation.

Interesting interview from owner of one of these chains – http://www.998.com/websiteui/en/news/other/a38.htm

]]> By: ChinaOptions http://www.stockgumshoe.com/2007/08/number-one-tier-two-monster.html/comment-page-1#comment-439 ChinaOptions Sat, 11 Aug 2007 20:17:00 +0000 http://www.stockgumshoe.com/?p=138#comment-439 What brought the stock down may be the 25% across the board Enterprise tax the PRC passed that will take affect in Jan of 2008. Just in time to tax the huge cash flow increase sure to be generated by the 2008 Olympics. Occupancy rates should be 100% in Beijing and nearby cities. Still 25% from almost zip is a tough nut to crack. There financials state they do not yet know the impact and it may result in a charge against earnings in 2007. Question is when will it show up? Also the appreciation of the RMB (Yuan) against the dollar will have a negative impact for any assets needing to be converted for reporting purposes. It will be interesting to see if the analysts factored this into their earnings forecast. Expect the earnings quarter just after the Olympic games to be outstanding. It will probably be the best quarter ever and a great time to be in the stock. I would probably want out before the following quarter and maybe even purchase some Puts at that time. What brought the stock down may be the 25% across the board Enterprise tax the PRC passed that will take affect in Jan of 2008. Just in time to tax the huge cash flow increase sure to be generated by the 2008 Olympics. Occupancy rates should be 100% in Beijing and nearby cities. Still 25% from almost zip is a tough nut to crack. There financials state they do not yet know the impact and it may result in a charge against earnings in 2007. Question is when will it show up? Also the appreciation of the RMB (Yuan) against the dollar will have a negative impact for any assets needing to be converted for reporting purposes. It will be interesting to see if the analysts factored this into their earnings forecast. Expect the earnings quarter just after the Olympic games to be outstanding. It will probably be the best quarter ever and a great time to be in the stock. I would probably want out before the following quarter and maybe even purchase some Puts at that time.

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