There is no bad strategy. There is only fraud. There is no so-called "antique porcelains". From the perspective of the company, the strategy has worked out pretty darn well. They are rich, and you are poor.
There is always the possibility of them going dark in which case you will not see a report or to complete a merger/buyout in which case there is no need for a report.
The door is open...don't let it hit you on the way out
Why are you posting here anyways?
Hack spam #$%$ go away you are making me crazy with all your appearances everywhere on these mb's!
Yes it is possible and if it is the Linyushanren collection it is a very high quality collection previously exhibited in Hong Kong and we could feel safe with the appraisal value. But it is my understanding that Linyushanren collection was not in the market for sale. Perhaps the exhibitions were trying to feel the market.
Part II: Moreover, there is the auction cost which the company considers as minimal but it cannot be less than 10%-20% of the value involving the premium paid to the auction house (at least 10%) and the advertising and promotion cost (not applicable if only few pieces are offered) even if the bidders are charged a 10% premium. Finally, if the collection is sold piecemeal at different times and different auction houses, it will take several years before liquidating the whole collection. So having bought the collection at 75% discount does not guarantee a profit margin so easily presumed by the management. In my view, the company could have done better by purchasing a profitable company with a proven record which could provide it with a stream of net earnings.
Part I: In my previous post I have stated that I am skeptical about the recently acquired antique collection and its prospects in terms of generating profits. Although the whole story can be a fabrication or involve a collection of lesser value, I see this as a lesser possibility. And I have no problem with China Gerui seeking alternative channels for generating income since the depressed Steel Industry in China leaves it with few alternatives. This market as it is also alluded to in the company annual report will require at least few more years to recover and this recovery will not be just attributable to a higher demand but also a reduction in supply as a result of reduction in the number of the firms either through bankruptcy and elimination or consolidation and cost-cutting measures. So seeking alternative avenues while working on improvements in the main business is a wise survival measure. The problem is that the field of antiques and antiquities is a highly specialized field with prospects of high return but only for those who are very well experienced and extremely knowledgeable about the business and the merchandise. Otherwise you must rely on the expertise of others which will significantly elevate the risk. The company claims that it has purchased this collection from a distressed collector at around 75% discount of appraised value. Actually this is not a great deal as there is usually a major gap between the a very qualified appraised value and the auction price. There are exceptions to this rule if the pieces are quite rare, of high quality, and good provenance which may actually sell at an auction price higher than the appraised value. So even if there are such pieces in the collection it cannot be true about all the pieces in the collection. CONTIUED
There has been some speculation that CHOP has acquired the Linyushanren collection. It comprises "more than 200" pieces dating back to the Song dynasty, would seem to correspond well with a purchase price of $234M, and was recently exhibited by Christie's, where it could easily have come to the attention of Harry Edelson. Obviously, CHOP and Christie's are not talking. Does this seem plausible to you?
Sentiment: Strong Buy
You are not familiar with the antiques and antiquities market and fail to understand the reasons for lack of specific information which you are demanding. According to company claims, this collection was purchased from a distressed collector at a huge discount based on qualified appraisal and is planned for gradual and piece meal auction in China and abroad. In this field, especially in case of rare and high quality items, the owner and buyer are often disguised. You can check the auctions of major international auction houses and it will confirm this point. Collections that come from major collectors and the pieces have a history and provenance cannot be disguised and this knowledge often used in the publicity and promotion of the auction and the item, but the buyer at the auction could still be an unknown individual and consortium. There are good reasons for not providing information about the actual pieces, their source, and who it belongs to at the time of auction. This may adversely affect the auction price of a collection but may also maximize the net gain if the pieces are sold individually over time at various auction houses around the world. Now lack of information may lead one to think that there is no collection or that it is not genuine, etc. which I do not dismiss and see it as a possibility. However, the management has given very specific information about the existence of the collection, its appraised value by qualified appraisers, its purchase and approval by the board and its registration, and its planned strategy to auction them over time to supplement its income which are all at its SEC filling and annual meeting transcript. These are all legal documents. So lack of more information about the collection does not prove anything. You have the choice of either accepting the legal documents as statement of facts or claim that they contain lies and fabrications. I am skeptical about all of this and its prospects but not for the your reasons.
The quote that you attribute to "the appraiser" comes from the website of Wei Yang, a Princeton, N.J. based consultant who appears to be well qualified. On what authority do you have it that Wei Yang was employed by China Gerui in connection with this acquisition? Thanks in advance.
Sentiment: Strong Buy
More than two months have passes since China Gerui bought the porcelain collection. I have asked China Gerui to disclose concrete facts about the contents of the collection. Got no response.
As a reminder:
1) We know that China Gerui “acquired a rare porcelain collection, dating back as early as the Song Dynasty, more than 1,000 years ago for $234 million”. The collection contains 206 items. That’s all we know. The website of China Gerui provides no info at all about the collection (no photographs, no list of items, nothing at all). Why?
2) On its website the appraiser, China Artwork Appraisers, says that “We pledge to offer affordable high quality professional art consulting & appraisal servcies to Asian art owners and art collectors who have no access to the elite professionals or scholars.” Also the appraiser promises to write an appraisal report to a customer. So China Gerui probably has received some kind of a report. Why China Gerui didn't ask a second opinion from an elite professional or a scholar?
3) We don't know the seller of the collection.
Let’s hope that the collection is stored in a safe location.
I said it was a buy at $1.70...and still is at $2.32
Nobody likes a reverse split but......better than a delisting! Glad that is out of the way!
Next: Earnings last year was Dec 3rd.......Hopefully, this year they could have sold at least some of the Dishes.......That would be a great catalyst and drive the stock up.....
$48 book value with $3.27 in cash and $44 in antiques......sell some now!