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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