Agree with your comment on STV. I've owned it for over 5 years and am amazed how well it turned out. Apparently the company raised more money than they needed and they are returning it to shareholders. Don't recall what the IPO price was but my guess is that thOSE who bought then did not do well.
Which brings the question, why havent they already.... Is the cash actually there. I know it is verified at the banks, but who knows in China
STV has giving out over $8 in dividend in last 5 years and the stock keep breaking new high with each dividend. ZA should plan for $2 each year dividend, not 20 cents... When they give the $2 dividend out and the stock should still be trading higher. Once the $2 was given out and everyone believe the cash is real in their reserve which is around $8 per ADR.
They were sold cbjoro as this post indicates. Stop embarrassing yourself by following me from board to board idiot. Get a life.
Yhea sucks doesn't it its a yearly thing and Duetshe Bank screws the ADR holder. They didn't screwed the holder twice this year with the dividend fee and the annual fee. Its for whatever service needed to handle the ADR. They are charging way to much and I think that is one reason so many institutions holding this dumped it cause in this case the fee is prohibitive
I was assessed an additional ADR fee in my Schwab account on 8/11 - not sure what it's all about. This is other than the fee I paid in June which came with the dividend (about 8.5 % in June). Is anyone familiar with this new fee and what it's for?
What time is the meeting at?
ZHANGZHOU, China, Aug. 5, 2014 /PRNewswire/ -- China Zenix Auto International Limited (ZX) ("Zenix Auto" or "the Company"), the largest commercial vehicle wheel manufacturer in China in both the aftermarket and OEM market by sales volume, today announced that it plans to release its unaudited financial results for the 2014 second quarter and six months ended June 30, 2014, on Thursday, August 21, 2014, before the market opens.
To participate, please call the following numbers 5 minutes before the call start time and ask to be connected to the "China Zenix Auto" conference call:
Phone Number: +1-877-407-0782 (North America)
Phone Number: +1-201-689-8567 (International)
In addition, the conference call will be broadcast live over the Internet at:
http://www.investorcalendar.com/IC/CEPage.asp?ID=173041. Please go to the web site at least 15 minutes early to register, download and install any necessary software.
A telephone replay of the call will be available after the conclusion of the conference call through 11:59 P.M. EDT on September 21, 2014. The dial-in details for the replay are: U.S. Toll Free Number +1-877-660-6853, International dial-in number +1-201-612-7415 using Conference ID "13587877" to access the replay.
If Hong cared about the shareholders and preserving shareholder value, he would immediately liquidate the company and distribute the cash and proceeds which would be equivalent of a $8.50 to $10.00 price but he won't do the right and smart thing because he doesn't care about the shareholders and shareholder value. If he likes the prestige of owning a listed company, there is more than enough cash to both up the dividend (most going into his own pocket) and implementing a stock buyback and still have near $200 million left, but he won't do that because he doesn't care about the shareholders and shareholder value. Or if he cared about the shareholders he could adopt more innovative and aggressive marketing strategies for export and increase sales and profits. But he wont do that either. He will not take any measure that is economically intelligent or advantageous to the shareholders. So what is he good for other than hanging the longs? That is why the only way to make money is trading ZA price fluctuations as I have been doing, but this will automatically chock the price and maintain it within a certain range keep the longs hanging. This hard facts are only for the benefit of the longs and victims of Hong since I trade it only short term.
Generally, a lesser alternative to dissolution & distribution of the assets which is the only smart move to immediately benefit the shareholders, requires significant expansion in sales which can be accomplished through exports. I have already mentioned several export-oriented measures which attempt to accomplish this objective. Another idea of promoting the company and increasing sales is adopting a Ringling Bros. and Barnum & Bailey Circus style of marketing. Zuoan should team up with another Chinese fashion company specializing in women closing and hold travelling talent & Fashion shows and contests throughout major cities in Europe and North America. For this purpose, it can link with the Chinese communities in major cities, and relying on them as a base in conjunction with fashion and design departments of educational institutions, to hold fashion shows using local models, primarily from the Chinese communities, and design contests open to university design & fashion students and other regional contestants. If possible these events should be held on special Chinese patriotic days, holidays and festivals, and in case of an actual local Chinese festival, Zuoan can serve as one of the sponsors of such events . The best of contestants can have their design adopted for production by Zuoan and perhaps receive a free trip to visit the company in China and the models can receive Zuoan attire (and its female counterpart) as gifts and prizes. This approach, if undertaken appropriately and professionally, could gain significant exposure for Zuoan products among the North American and European youth which can then be purchased at their website. Generally, most of such events will be covered by the local media and university student papers which is another way of introducing Zuoan brand and products. There is much detail that can be worked out to improve and refine this marketing approach but the basic marketing concept should be clear.
I have already mentioned a lesser alternative to liquidation which was mass production for export and worldwide distribution through a department store such as walmart. Another alternative is selling their last season's products at a discount at online stores, especially Alibaba, Amazon, Overstock, or even EBay. This will significantly increase their sales though it will reduce the profit margin. But a lower margin on much higher volume will still yield higher aggregate profits and minimize their short term losses. If Zuoan management channel some of the company's artistic creativity in the direction of innovative thinking and business acumen it can think of other creative ways to increase sales. But in my view, none of these measures, even if the management had the capacity or competency to explore and implement, will result in substantial price appreciation. I appreciate other creative ideas from those who are familiar with the industry or general business operations.
The distribution of cash and proceeds from the liquidation of the assets is equivalent to around $8.50 to $10.00 price depending on what the assets will sell for at an auction less the cost of liquidation. The cash per ADR share alone is around $8.50. Foolish to expect the current price reaching $10.00 in the next two years, if ever. That will yield mega profits for most of us. I am not long and only trade short term price fluctuations which is the only way to make money on ZA under current circumstances. But I see this as the only viable alternative for longs, not to mention hefty profits for myself. Unfortunately, it is very unlikely that Hong will go along with this most reasonable and logical solution. Meanwhile expect continued manipulation of the stock and depressed prices far below the book value and at a fraction of the cash value.
Now you are getting the drift of it. He pockets most of the dividend payout and there is not better way of watching the till. Stock buyback is at best a defensive measure to maintain the price till the market condition and financials change. If it helps to raise the price, it will not be significant. That is why liquidating the company best serves the shareholders. At the current price distributing the cash will immediately yield $6.00 of profits per ADR share, not considering the liquidation value of the rest of the company assets. This is equivalent of a market price of around $8.00. How long do you have to wait before you see $8.00, if ever, even with a stock buyback program? But the harsh fact is that the shareholders' interests are in conflict with those of Mr. Hong. Thus short term trading of price fluctuations is the only way to make money on this stock. Those who are focused on the dividend see the tree and missed the forest. You see the forest but are still asking for a Band-Aid solution.
I am a shareholder of this company and I, along with most of the people that follow this stock, think that a share buy back would be great for the share price and shareholders. At least holders of the ADS's. The Chinese owners (Mr. Hong) do not own the ADS' s they own ordinary shares that are not traded on a puplic market, yet in the fillings you see that the shares that were "awarded" at $1.5 per regular share ($7 per ADS) were all sold in private transactions after they were awarded. This tells me that the ADS price has no bearing on the private party value in China. So that begs the question how is it Mr. Hong's personal interest to buyback shares? Take the most recent dividend. They paid out lets say $5M for simplicity ($3M or so went directly to Mr. Hong). At 1.5 a share they could have bought back 3.33M shares or almost half of the 7M share float with that $5M. This would have been good for all of us, we would probably see much higher price per share, but how would this benefit Mr. Hong? Would his private party shares be worth more? No probably not. I could see them doing a share buy back of private shares which of course would be higher than $1.5 for four, and would likely only benefit Mr. Hong because it would do nothing to support the ADS price other than increasing EPS per share which seems to be ignored with this company anyways.
I think a similar thought process is applicable to the idea of liquidating the company and paying out shareholders. There are people willing to pay book value for this company in China, and Mr. Hong is able to have the company guarantee personal loans for him (its in the filing) so why would he give up his control and access to capital so that we can profit? It seems good on paper, but then when you start thinking about rational self interest of the majority owner and the lack of shareholder rights in China especially foreign shareholders it just seems it won't happen.
If immediately getting $6.00 profit per ADR share is a stupid idea then you need to get your head examined. Perhaps you didn't like my Walmart mass marketing idea as a lesser alternative. Well, is the little more upscale J.C. Penny a better choice? But if you think Zuoan is the Chinese Christian Dior, you need your head examined on that account as well.