I was looking through some companies and came across Global Source, LTD. (GSOL). Their metrics have everything I look for in a long term investment: Strong earnings growth, low D/E, shareholder friendly, etc. But there's one minor problem I can't resolve...
I can't quite figure out why this company is still in business! They started in 1971 and provide media to link Asian suppliers (mostly China) with buyers across the world. Their main platforms are: Trade publications, Exhibitions, and internet. I think buying stock in a company that produces print magazines is akin to buying 8 track audio devices. Trade shows? Fine. Internet, fine.
I can see how this company worked in 1971, but in 2013 why wouldn't Asian suppliers start designing their own websites to market their products? And why wouldn't buyers use the internet to search for products? While China probably has more restrictions on internet usage, to my knowledge, they allow companies to use it.
Obviously, I'm missing something here. Again, I like everything about this company from a metric standpoint, but I just can't see how they can continue to thrive. Hopefully, I just don't understand how media companies work. I looked through their 10K equivalent:
http://www.sec.gov/Archives/edgar/da...3/form_20f.htm
They don't seem to be in any way an advertising agency. Sorry if this is a dumb question, but this company seems doomed to me and I'm curious if anyone can help me understand this company and/or the business they're in. Thanks.