tag:blogger.com,1999:blog-29462482.post241518165685550021..comments2023-10-17T15:46:53.662+08:00Comments on nexttrade: SEG- a short respite?Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-29462482.post-23209832621905457952013-05-21T15:40:47.578+08:002013-05-21T15:40:47.578+08:00Hi Big Sea,
Thank you for your insight. I always ...Hi Big Sea,<br /><br />Thank you for your insight. I always believe that industrial players would suddenly find themselves in a situation where they is abnormal profit due to many factors. Everyone would expand until the industry reach a saturation point where additional capacity would lead to diminishing return.<br /><br />The question to ask is why do the industrial players choose to grow across the tipping point. Because everyone wants to be the market leader or at least the top 5 or 10 or 20 players that would eventually weather the industrial consolidation.<br /><br />SEG may be paying the price for achieving that growth to be among the top players in the educational field. As investors, we must consider our position: Do I want to be stuck in SEG for the next few quarters of substandard earning? Can my money be better deployed? The answer would likely be YES. With that, the share price of SEG would remain depressed.Alex Luhttps://www.blogger.com/profile/08920196030603399063noreply@blogger.comtag:blogger.com,1999:blog-29462482.post-74199081365608863722013-05-20T10:46:39.817+08:002013-05-20T10:46:39.817+08:00Commercialized Education Institution starts to adv...Commercialized Education Institution starts to advertise aggressively on Newspaper as well as TV. This is abnormal. Could be a clear sign that oversupply situation is getting worse. <br /><br />The Total Available Market to the whole industry will not change much just by advertising, a lesson we can learn from the Tobacco company. Advertising increases your business at the expense of your competitors. Soon your competitors will response and the situation will be back to square one. <br /><br />Given the quality of our Private Institution and the oversupply situation, the whole industry should be avoided. Big Seahttps://www.blogger.com/profile/00281973839764140153noreply@blogger.com