When listed to commit suicide

In China's reputation "big" online business transaction website "Dangdang" recently successfully listed on the other side of the ocean, from selling books, selling dishes to sell department stores ten years along the way, the Internet elder brother finally achieved the goal of listing. Its perseverance, silently cultivate the respectable spirit always reminds me of another well-known internet company-"Jinshan", the Internet veteran company in the past more than 10 years of hard work, the 2006 with the success of online games in Hong Kong listed, this moment do not know how many jinshan old man excited difficult self, And one of the pillars of Jinshan Lei June also listed after leaving Jinshan, frankly too tired conversion runway become an investor.

Jinshan after the listing of stock prices into a stagnant stage, has still been weak growth, reflected in the company level is the lack of innovative capacity of products, it is difficult to give consumers too much expectation. Jinshan and when all belong to hard work honest enterprise, then and Jinshan have similar experience when listing will encounter similar Waterloo?

When CEO Li Guoqing once boasted that Dangdang only "burned" about 40 million dollars, in order to burn money for the use of E-commerce companies are the least money. It seems to be an economical, prudent company, if it is to do industrial or service industry This is of course valuable quality, but for the expected high return of the capital market is the most undesirable his soporific pill. Listing a total of 272 million U.S. dollars to 1.8 billion, ask now when there is such a ability to spend money? Everyone can play with the money, but a man who has always been frugal has suddenly become an upstart, and spending money on the place is a difficult place.

Moreover, when the existing business model has been formed for many years, selling books, selling dishes this kind of traditional business profit margins are relatively low, for many years to slow down when the development of new business, is not too simple things. Can not lead, pull the whole body. To create a shortage, conservative will be a big problem when facing the future. In addition to the return of management, employees and investors, the market will also face pressure from more and more stock markets. Business model, the ability to spend money, the ability to reorganize are all horizontal when faced with the need to solve a big problem, once the poor performance of shareholders will vote with their feet when enjoying the pleasure from heaven to hell.

The typical conservative molecule Ding lei in many years ago expressed regret listing, such as when the fruit is not listed on the accumulation of years as a local despot no problem, and the listing may let this originally good company from the interior by years of fixed thinking and conservatism, tantamount to the introduction of knife Ziwen.

Source: XJP submission, original link.