A Nutty Investor? Hardly.
Time Asia reports on Hong Kong investor Li Ka-shing's determined investments in 3G networks through his Hutchinson Whompoa in the face of shrinking capital investment by almost all other telecoms.
Posted by Mitch Ratcliffe at November 25, 2002 11:05 PM | TrackBack
Considering what Hutchison 3G is up against, the company will be hard pressed to meet its target break-even date of 2005. According to estimates by Nomura, Hutchison 3G will have to capture a minimum of 6.4 million subscribers in the United Kingdom, or a 13% market share, just to start making a positive return on its investment by 2010. The forecast out of technology consultant Forrester Research is even grimmer, pushing Hutchison 3G's break-even date in the United Kingdom back to 2017.
Why is Li pushing forward at the moment of maximum pessimism? The short answer: because he is able to when no one else can.