Category Archives: Stocks and Shares(论股票)

The significance of China’s free trade zone(中国自由贸易区的实际目的)

China formally approved the establishment of a free trade zone in Shanghai  in September 2013 and further announced the approval of twelve more free trade zones in various cities in China in January 2014.

Shanghai is the forerunner of all the free trade zones and is a world focus on this new phase of modernization of China. The principal purpose of establishing the free trade zone of Shanghai is to open up the economy to facilitate China’s modernization. The secondary purpose is to build a city with a state of arts infrastructure hardware-wise and software-wise similar to major cities of developed countries, such as Tokyo, New York or London, to replace Hong Kong. There shall be ample of business opportunities in Shanghai in the coming years.  Implementation of all the innovative plans in building the free trade zone requires a lot of talented people. Hence there shall be a lot of job openings for international professionals.

The new vision on Shanghai is that:  one day in the near future, the Chinese currency RMB shall be fully convertible; the Shanghai stock exchange shall  become an international stock exchange; a sophisticated broadband data super highway shall cover the whole city to facilitate fast communication and cloud computing in business activities and for inter-branch work collaboration of international companies;  offshore banking shall be offered; a modern commercial litigation and arbitration mechanism shall be set up (laws that complies with modern business practice shall be enacted); the City of Shanghai shall grow as part of the urbanization strategy of China to increase internal consumption to sustain economic growth.

(Note: stock that may benefit from this development is China Telecom: CHA:NYSE)

Виктор С.

Copyright Reserved MONIES.CA 2014

Google – A Stock of the Future (谷歌 :一间超时代的公司)

Many still conceive Google as just a search engine company earning money by selling advertisements on the internet only.

In fact Google is much more than that. It is a company of the future. It is a company which is threatening Microsoft.

Apart from selling advertisements online, Google has many other services . This long list of items may have diverted our attention away from what Google is actually heading.

Chrome is a product that will bring success to Google. It is a platform that is challenging Microsoft, a platform that will eventually cannibalize Microsoft’s Desktop.

What Windows is to Microsoft, Chrome is to Google.

Many year ago, being a man of vision and with an ambition to dominate the desktop as well as the Internet, Bill Gate killed Netscape, then  a successful  pioneer web browser developing company, by giving out  the free browser, Internet Explorer (IE). From then on Microsoft’s Browser IE became the dominant web browser for surfing the internet.

Upon Netscape’s going out of business, the industry supported a volunteer group of former Netscape employees to develop the Firefox Browser to challenge Microsoft’s dominance on the internet. However, Firefox was not popular and developers often used IE as a platform for their application developments. Very often Firefox’s http requests hit the annoying  message  “not supported, please use IE”.

For Google to develop Cloud computing, relying on IE as a platform is not a good idea for obvious reason. Neither is it good to relying on Firefox which is maintained by volunteers. So after much deliberation within the company, Google finally developed its own browser, Chrome, and released it in 2008. Within five years, Chrome wins the trust of the internet community and by now has overtaken  IE as the most popular browser on the internet.

Using Chrome, Google gradually integrates all its services such as “Google+”- a social networking service, Google Drive – the Cloud Hard disk, Gmail, Calendar, online office documents processing applications etc.

Microsoft has dominated the desktop for over 28 years. The industry had tried to introduce Linux as an alternative OS to Windows for the desktop but was never successful. The game changed in 2010 when the tablet hit the market. Though the population of desktop users is still large, yet many people have switched from desktop to tablet. And incredibly, six month old babies have also become users because at this age they can stretch their hands to fetch things, the only motor skill required to operate a tablet. In response to the new market, tablet manufacturers emerged with different bleed of OS. Virtually, except  IE,  every made of browser  such as Chrome, Firefox, Safari etc. can sit on any tablet.  IE on the other hand can only sit on Microsoft’s proprietary Windows OS because as a price paid for killing Netscape, IE cannot be detached from Windows OS made up of codes of Gigabyte size. If Microsoft has to maintain its own standalone browser brand, the only way is to build another browser in a different name making IE a legacy.

In the desktop market,  putting Windows OS and Linux OS side by side, Windows is the giant. However, in the tablet market, the Android OS of Google has dwarfed Windows OS.

“Desktop” computer shall still have a market especially in the office environment. However, the trend has already started in moving the “desktop” to the Cloud. Application shall be deployed from the Cloud the hard disk shall be replaced by the Cloud drive such as Google Drive.

It is a trend that future application shall be deployed from the Cloud as service and hence be charged as a service with revenue model similar to that of cellular phone business, a model with regular and constant cash inflow.  OS and applications shall always be updated automatically  and consumers shall not have to bear the tedious annual upgrading of desktop OS and desktop office applications manually any  more.

The Chromebook of Google  is in fact a landmark product of this future trend.

While online advertising is still Google’s major revenue base and will be subject to economic upturns and downturns similar to all other businesses, this solid revenue base of Google shall healthily  support Google’s development in Cloud computing,  a vast market with tremendous growth  potential. So far in this area, Google is moving in full momentum and is ahead in the game.


Виктор С.

Copyright Reserved MONIES.CA 2014

大麻股(A Marijuana Related Stock)

A Stock to Watch:  GW Pharmaceuticals PLC  (GWP : LSE)(GWPH: NASDAQ)

GW Pharmaceuticals PLC(GWP)乃一间英国制药厂,现时其单一产品是Sativex ,乃由大麻提练出来的一种药用喷剂,公司拥有英国政府许可的秘密大麻(Marijuana)种植场,经多年开发及临床试验,产品Sativex已面世多年,药物主要用于治疗多发性硬化症(Multiple Sclerosis)引發之痉挛。现时主要市场是欧洲多个国家。过去公司曾尝试将产品销售美国,但美国的临床试验得不到满意效果而得不到美国药物管理局之批准。及后公司与一间在美国已有销售基础的日资私人大药厂Otsuka Pharmaceutical Co. 合作研发产品,公司并指定Otsuka为其美国代理商。现时GWP还不断与Otsuka合作改良大麻品种及对从大麻提取出来的不同成份作积极的研究,并展开临床试验,尝试扩展产品用途的领域,如治疗末期癌病痛楚,缓解癫痫发作等等。

GWP发展及锁售药品已超过十年,现Sativex在医疗界广为人知(美国不少吸食大麻人仕,更以Sativex的疗效为例,争取吸食大麻合法化),公司亦於最近选择了拉叮美洲的代理, 相信正式进入美国市场,将计日可待。而大麻对多发性硬化症(Multiple Sclerosis) 的疗效亦长久得到专业学者的认同。因此GWP是一间甚有发展潜力的公司。

Виктор С.

Copyright Reserved MONIES.CA  2014

A Stock to Watch: OPAY(一间百折不朽有前途的网上汇款及电子支付平台的上市公司)

A Stock to watch: Optimal Payments PLC (OPAL traded in LSE)

This is a money mover and payment gateway company established in1999 in Canada. Its original name was Neteller. The company took advantage of the online gambling poker boom in 2003 and the exit of Paypal’s from the online gambling market as an opportunity to enter the online gambling market by providing money transfer service. The company is not by itself an online casino.

The company established a service center in Calgary targeting the US market. It was then the leader in moving money for online betting sites. In 2004, the company went public in AIM with a capitalization of £240 million. In 2005, the company processed $7.3 billion worth of financial transactions reporting a revenue of $172.1 million and a net profit of $91.5 million.

At that time, the company derived close to 90% of its revenue from market in the United States.

The good days of the company were over in 2007 when the US government sudden arrested the company’s founders when they were in transit in the United States while travelling and charged them for money laundering. They were only released after the company paid for them a $136 million fine. After this event, the company completely exited the US market.

Share price of the company plummeted from its peak of 760p to 50p. The Calgary service center was closed forever.

Its founders later rebuilt the business by merging with Optimal Payments, a payment gateway company and diversified its services from the online gambling to services for transactions of other merchandizes and created a popular money storage Mastercard for conveniently carrying money across borders.

In recently years, the US government gradually changed its rules and allowed online gambling to take place within the United States though it is to be regulated. Optimal Payments quickly teamed up with Casino operators such as Caesar Palace which established an online operation Caesars Interactive Entertainment  and gaming hardware and software provider Bally Technologies, Inc. While till now, no one residing in US can sign up an account for money transfer with Optimal Payments, the company can still bring clients outside US to play games on the US sites to benefit the US economy.

Given the recently price performance and the large volume of transactions of this stock, it is not unwise to speculate that business of this company has some break through and has substantially improved. Whether one decides to hold this stock or not, it is definitely interesting for one to follow the story of this stock. Unlike the early years, risk of holding this company is reduced because although transfer of money for gambling site is still bread and butter of this company, the company has diversified significantly and successfully that now about 40% business of this company is not related to online gambling. That 40% cannot be easily killed.

Виктор С.

Copyright Reserved MONIES.CA 2014