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Lai See

Ben Kwok

Webb's curse turns into a blessing for CFIIF

Corporate activist and small-cap specialist David Webb can move the market - for better or for worse.

Over the weekend, he issued a bubble warning for China Financial Industry Investment Fund (what a trendy name!) detailing its corporate deals over the past three years. The main message: the stock, at Friday's closing price of HK$1.50, was more than 28 times its net asset value.

With the curse from Mr Webb, CFIIF was destined to return to being a penny stock. It didn't happen. Instead, it closed yesterday with a 48 per cent gain to HK$2.22.

The gain was better than any of Mr Webb's Christmas stock picks the next day, so we sought his comment.

'I give up. You've been warned,' said Mr Webb. 'It is now 42 times net asset value! I have a HK$100 note for sale, fresh out of the ATM - would any of your readers care to pay me HK$4,200 for it? I hear it will be worth even more tomorrow.'

CFIIF has become the best-performing stock this year, with a 115 times return so far.

Caveat for investors

Are investments just too good to be true?

Hong Kong's securities watchdog yesterday warned a mutual fund plan offered some investment products that claimed they could generate a 25 per cent return per month (which works out to 300 per cent per year).

Little was explained as to how the fund invested the money, but some participants would get referral fees similar to a pyramid selling scheme. The Securities and Futures Commission did not name the party, nor the websites involved, merely stating it is not an authorised fund. To make doubly sure, make certain any funds you invest in are not on SFC's alert list (http://www.invested.hk/InvestEdAlertList/jsp/EN/AlertList.jsp).

There is no free lunch in Hong Kong.

Ad drive stirs controversy

The Association of Accredited Advertising Agencies of Hong Kong, or the HK4As, failed to get an 'A' on its 50th anniversary.

A photo of its latest advertising campaign, 'Making brands shine for 50 years' (http://www.aaaa.com.hk/en/index.php), has stirred controversy on whether it was copied from the work of New York photographer Philip Toledano (http://mrtoledano.com/frame_photographs.html, photo of hope and fear).

We have heard from both sides. Mr Toledano told us in an e-mail: 'It's rather ironic that the HK4As celebrates 50 years of creativity by pilfering someone else's ideas.

'Frankly, I think that one has to be rather naive to think that in the age of the internet you can get away with plagiarism - the Web has made the world of art and media a very small community.'

A spokeswoman for the HK4As told us that the campaign was unique and colloquial in theme and visuals. But she had nothing to add in response to allegations of plagiarism.

Tornado may hit tycoons

Still with advertising, green appears to be the buzzword. Quoting 'Al Gore' and 'CO2 emission' throughout its press release, Philips impressed Lai See and his cartoonist Ming about its suggestion on how HK$1.4 billion can be saved in energy costs. Very easy - use Philips' new Tornado energy-saving bulb, assuming all 11 million incandescent light bulbs in Hong Kong's homes are replaced by Tornados.

We are not sure if Li Ka-shing or Michael Kadoorie, the tycoons behind Hong Kong's power industry, will be so thrilled about the new bulb.

A test of chivalry

What would you do if you found the reading light at your flight seat was out of order?

Executive Council member and businessman Leung Chun-ying had the experience over the weekend on his Cathay Pacific flight to Rome, travelling with his wife Regina and two children on economy class.

Mr Leung was reported to have expressed his displeasure and asked for an immediate repair. A flight attendant offered the alternative of changing his seat (probably an upgrade). But Mr Leung was believed to have asked to keep his seat. We are happy to hear he maintained his gentlemanly demeanour throughout.

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