Ann: Co-operation with Vipshop Accelerates, page-5

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09/06/15

11:25

Post #: 15433822
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Originally posted by Gwaihir ↑

There is a trade-off from the vipShop investment in Ensogo, and their seat on the Ensogo board.

Ensogo gets access to vipShop in return for not expanding into China, and probably for eventually closing down the Ensogo Hong Kong outlet.

One way to stifle expanding and potential opposition in business, however small, has always been to buy into them like vipShop has done.

Effectively, we now know that Ensogo will never expand into China. This severely limits Ensogo's potential, hence the share price stagnation, something that insiders understand.

Still, there is the rest of South East Asia to work with, and if that market goes bunta, especially on mobile, then vipShop will simply buy Ensogo out before it permits Ensogo's share price to appreciate greatly. That way vipShop doesn't have to pay too much. It's logical business acumen.

Whichever way you look at it, vipShop cannot lose, and why Ensogo will be allowed to become at least moderately successful before being swallowed up.

My bet is that at the current share price, at least you will double your money within a 2 year period, provided they don't go mad on liquidity.

Gw

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I do not trust Chinese companies gw but vip have little power over e88. They have under 20% vote on board decisions. Hong kong is safe, vip shop will have to contend with competitors. Maybe you could shed light on the other new investors. There is more chance of a friendly takeover than aggresive, this will be minimum 45cents imo.

I would like to see vip shop buy up more shares on market, i think they will the SP will rocket just a matter of time.

E88 Price at posting: 14.5¢ Sentiment: Buy Disclosure: Held
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Ann: Co-operation with Vipshop Accelerates, page-5

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