Wednesday, December 18, 2013

Seeking Alpha: China Dongxiang - A Sportswear Company That Doesn't Want To Make Sportswear

When you look overseas you often find some unusual, if not outright strange, stories. China Dongxiang Group (OTC:CDGXY) (3818.HK) may just take the cake, as this sportswear company apparently isn't very interested in being in the sportswear business.

Although China Dongxiang owns a relatively popular sportswear brand in China (Kappa), management no longer seems committed to building the brand. Instead, management likes to take the company's cash and invest in other companies and investment funds, most having little or nothing to do with sportswear. Apart from a small stake in Alibaba, management has shown no particular skill with these investments and it seems unlikely that they are going to pay out the surplus cash as a dividend or reinvest it into the business.

Read the full article here:
China Dongxiang - A Sportswear Company That Doesn't Want To Make Sportswear

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