Geely Automobile Holdings Ltd Ticker Symbol: GELYF-OTC


Geely Automobile Holdings Limited. The Group's principal activities are manufacturing and trading automobile and related automobile components. Other activity includes investment holding. It operates in Hong Kong, the British Virgin Islands and the People's Republic of China.


“This is the first Chinese automobile to participate in the Detroit Auto Show, so we’re unique,” said John Harmer, vice president and COO of Geely-USA. “As auto shows go, this year isn’t dramatically different from last year — the most significant change is that Geely is here.”

Here's a Link for the Auto Show News:
http://www.msnbc.msn.com/id/10779158/


Geely Introduction

-Geely founded on Nov. 6 ,1986. made its debut in manufacturing parts of refrigerator-evaporator located in Huangyan, Luqiao , Taizhou city, Zhejiang Province.


-On May,1996 , Geely Group Co., Ltd was organized.

-On March,1997 Geely start into High-education industry. Now Geely have three colleges, Beijing Geely University became one of the private-owned universities which has the independent right to authorize High Education Diploma in Beijing city.

-1997 Geely set its foot in Automobile Industry.

-On August 8, 1998 . The first Geely Car launched off in Linhai City Zhejiang Province.

-In 2003, the group focuses on the core business of automotive industry, and accelerates its paces by improving management, capital, technology and human resource.

-On January 28, 2003, the general assembly plant in Taizhou Geely Automotive City, which is expected to produce 300,000 units of vehicles per year, was built up.

-On March 24,2003 Founded Zhejiang Geely Holding (Group) Co., Ltd.

To take off for the second time, the group is making effort to establish Geely brand, and a modern joint stock enterprise group with excellent corporate culture, highly efficient capital operation capability, modern management ideas, participation of all staffs in making innovations, overall quality management system, powerful economic strength, and the harmonious development of the core business of automotive industry and higher education and real estate.

"Within five years, we will expand the four production bases to manufacture both medium-grad and low grade cars including two-compartment and three-compartment economical sedan cars, fashionable sport cars, SRV cards, etc. We will have a production capability of 600,000 units per year at that time. We will manufacture stylish and economical two-compartment sedan cars in large quantity, make a firm step in developing small three-compartment multifunctional SRV and medium-grade cars, and build up the two major brand names of Geely and Huapu, so that Geely can break the existing pattern of the domestic automotive industry and build up its status as economical family sedan car giant. We will step foot into the automakers of the world, and play an increasing important role in the world automotive market."

Link for Company:
http://www.geely.com/english/about/intro.htm

If you look at the support levels for this company they are stable & growing. I think that as this company develops you will see a growing share price appreciation. I would expect that it may be 2009 before they enter the US Auto Markets, 2008 seems a bit aggressive, as there are some concerns with emissions & saftey for auto makers to compete in US markets. That coupled with a recent (abet short termed) focus on China products could provide near term resistance. Before you are dissuaded, FYI the US is not the only market in the world! ROW (Rest of World) market growth is impressive. As I have researched this more over the past two months, I have become more & more impressed at this companies business executions. I would not be surprised if you see this company in a Newsletter teaser at some future date. (I'm surprised they've missed it so far) Quite frankly this is my first generous write up for the masses as I have yet to take a position in this stock. I will be buying shares 48 hours after I publish this recommendation. I like to write about growing companies analogies such as, "This story has legs..." Here's one for you today, "Which has Wheels!"

Not bad prospects! Happy Trading.

Note: The author has no position in this company, consider your investment risk tolerances before buy any recommendation from anyone it's your money, make it your decision. While writing up this story there was a recent WSJ article concerning a development that might give a nice entry window for the price of this stock. I have provided the link bellow.

http://online.wsj.com/article/SB118454126683167076.html?mod=home_whats_news_asia

I've never heard of this company. A few years back, I was reading quite a bit about Chery. Not sure if they are the largest domestic automaker in China or not, but here you go. The guy who brought Yugo to the USA, is also trying to bring Chery here. quote from the link below from 2005. "Moreover, Chery is still considered a second-tier Chinese auto manufacturer behind Shanghai Automotive Industry Corp.'s joint ventures with industry giants GM and Volkswagen AG. "

http://www.detnews.com/2005/autosinsider/0501/02/A01-47455.htm

Well for the sake of satisfaction I read the news from the link (actually I read it twice) once for content a second time for context. The author makes some very valid points, several of the examples are not related. (IE Apples & Oranges Comparisons) The general tone (subtext) is 'Be afraid, be ver-r-r-y afraid'. Most of the article or 'crux' if you will is summed up in these two sentences from the article:

"If the Chinese realize that they are losing business to India and Vietnam, which can beat them on price even if not on quality, then the quality in China will start improving," Wong said.

Much depends on how seriously the government takes the quality issue. While authorities have publicly expressed determination to address the problems, they've also accused the international media of fueling unfounded fears about the safety of Chinese exports.

As far as whether I might purchase a Chinese made automobile in the next ten years, I couldn't say, I've never driven one. I drive a Volvo. As far as investments are concerned, regarding a Chinese automaker. With potential of being in the first mover export class, as well possessing a stable track record and market growth opportunity currently trading at .17 cents per share. Risk reward ratio tells me I have little downside, with a huge upside potential over the long haul, especially if they turn out to be the next 'Hyundai' instead of the next "Yugo". (The reason I am not putting any money in to Chery from China) Consider your risks, invest in what you know, and as they say "Let the chips fall where they may!"

Happy Investing! Regards.

I agree, although the focus in my coverage has been strictly 'one sided' there is the opposite side of the coin which is the 'ka-Ching' that will be garnered by domestic auto sales in China. An often over looked & not market wide discussed is the growing middle class. (one that 15 years ago didn't really exist) The % of drivers is an undeveloped market segment.

My good friend Binoy & his wife owns an auto manufactured by TTM (he lives in India) and it has served him well. Right now the biggest & better spent money is in infrastructure there in India, it is a 'Huge' drag on their economic development. Not to say that things don't get done, but it is 'haphazard' at times and their are sporadic down times as India Labor is going through growing pains. He is originally from Long Island, NY and sees positive developments in the markets there.

Nice pick there slam608 one to save for the print file. I like to keep a file on my long term stocks, so that I can keep focused or (at times) remember why I selected the company & the sector.

Regards.

Many thanks PereUbe, but most of all Thanxs to GS for hosting the contest & the forum. This has been a favored site for some interesting ideas & learning. Hope your trades go well. Regards.

Saw Geely in some recent headlines with regards to the Detroit auto show.

Here is a link to this headline and others over the past while with Geely.

http://www.theglobeandmail.com/servlet/story/RTGAM.20080114.wrchina14/BNStory/Business/

http://www.theglobeandmail.com/servlet/Page/document/v5/templates/hub?searchText=geely&hub=Search&searchType=Quick&iaction.x=11&iaction.y=14