Hotung Investment (和通）

[theasiareport]

What good if the cash is designated for investment, ie not free cash for distribution.

The day hotung stop investing is the day we should start investing.


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Well, its good if its earmarked for future investments (which is their core business). Unless Hotung has a track record of destorying value, it makes sense that their cash holdings should be taken at face value.

It just doesn't seem to be the case that management will actively seek out poor returns on their investments.