Note – tomorrow I’ll present a more detailed look at the company itself and last week’s 2Q09 results
I like Li and Fung (HKG:0494). These guys are growing and cutting costs in a global recession. But to top it all off, they are sitting on a cool US$1bn in cash.
The President of the firm (Rockowitz) summed it all up when he said last week: “We’re sitting with about $1 billion of firepower. I see this as a huge window of opportunities, like a kid in a candy store and you want to eat everything.”
CEO William Fung said that the firm is looking for potential acquisitions in the US and Europe in the beauty, health and cosmetics markets.
Although stocks have appreciated in the last half-a-year, with so much firepower Li & Fung must still have leverage to find bargains out there.
Google finance description of the comapny:
Li & Fung Limited is an investment holding company. The Company, along with its subsidiaries, is engaged in the trading of consumer products. It operates in two segments: softgoods and hardgoods. During the year ended December 31, 2008, softgoods and hardgoods accounted for 66% and 34% of turnover respectively. The Company manages the supply chain for retailers and brands worldwide. It services its customers globally through a sourcing network of over 80 offices in more than 40 economies.