tag:blogger.com,1999:blog-37872616.post777704834562301472..comments2024-03-29T15:43:16.837+08:00Comments on BULLy the BEAR: Aztech ventures into construction materials??!!la papillionhttp://www.blogger.com/profile/01372278083694506953noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-37872616.post-26296800039676712752008-01-21T14:00:00.000+08:002008-01-21T14:00:00.000+08:00Hi MW,Haha, but to be fair, aztech is going into c...Hi MW,<BR/><BR/>Haha, but to be fair, aztech is going into construction materials, not really into construction. So again, they are doing supplying commodities to the construction companies.<BR/><BR/>But this kind of thing, I think, is hard to break into as the existing suppliers should already have their own customer base. Why trust someone who had no prior experience?<BR/><BR/>I think it'll be interesting to find out more when the info is available.la papillionhttps://www.blogger.com/profile/01372278083694506953noreply@blogger.comtag:blogger.com,1999:blog-37872616.post-69728855211699096102008-01-21T09:33:00.000+08:002008-01-21T09:33:00.000+08:00Hi LP,Thanks, I agree with you on the points you r...Hi LP,<BR/><BR/>Thanks, I agree with you on the points you raised. Such is the nature of commodity products which have no real pricing advantage or power when it faces fierce competition.<BR/><BR/>Aztech has to contend with the big boys out there like CSC, Yongnam, Lum Chang and Lian Beng. I doubt they will be very successful, in my opinion.<BR/><BR/>Regards, MusicwhizMusicwhizhttps://www.blogger.com/profile/10950754156386935254noreply@blogger.comtag:blogger.com,1999:blog-37872616.post-52013915517286570772008-01-21T08:10:00.000+08:002008-01-21T08:10:00.000+08:00Hi MW,Yes, you're right. At last count, their manu...Hi MW,<BR/><BR/>Yes, you're right. At last count, their manufacturing plant in China is facing rising wages. Add to that the appreciating yuan, it rises up that cost of goods which will eat up their margins.<BR/><BR/>Their industry is very competitive. If their pricing are not competitive, I think there is really no loyalty to their product because there are so so many substitutes for them.<BR/><BR/>So to me, Aztech is trying to salvage the whole situation by venturing into the latest and hottest industry - providing construction materials. <BR/><BR/>They might be jumping into another hotpot altogether, hahala papillionhttps://www.blogger.com/profile/01372278083694506953noreply@blogger.comtag:blogger.com,1999:blog-37872616.post-37776535033711535872008-01-21T06:58:00.000+08:002008-01-21T06:58:00.000+08:00Hi LP,When I read of companies doing stuff like th...Hi LP,<BR/><BR/>When I read of companies doing stuff like this, it always makes me wonder if their original core business is in trouble ? If you are running a good business which you are familiar with, why "diversify" into something unrelated and totally different ?<BR/><BR/>Regards, MusicwhizMusicwhizhttps://www.blogger.com/profile/10950754156386935254noreply@blogger.com