Negatives on LongCheer

Negatives:


1) Does not possess its own brand.
2) Currently one of the highest ROE design house, expect more competition.
3) Management holds a lower value of its shares compared to shareholders.
4) Major customers are susceptible to change in consumer tastes, as evident in TechFaithWireless with NEC( as a result of insulting the Chinks).
5) Major customers are small in comparison but can be view both negative and positively.
6) Need to spend $ to purchase new technology know how.
7) Target customers at the lower end faces intensified competition from smaller companies.
8) Inability to break through to the US and European market.
9) Went to linux development without much success.
10) Rapid increase in staff
11) Shorter product cycle
12) Increase in Yuan value may adversely affect the bottomline of LongCheer.
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Regards
Niversphere.