I first became interested in JADE many years ago when
the price was around $2 and about 8 million shares were outstanding.
My family accumulated a large stake which has mostly since been sold.
I believe that I involuntarily still own thousands of shares however.
TheStreet Ratings recently downgraded JADE from hold to sell
following the Company’s latest financial report. That opinion is
fundamentally honest though somewhat superficial.
JADE is a case study in how a promising young business
can be ruined as an investment by schemers and an awful adviser.
I won’t summarize its history of fraud including a meritless lawsuit
filed to manipulate the stock’s price.
The subject here is the current situation:
Book Value is an accounting of shareholders’ equity
far less important than estimated future earnings.
JADE undoubtedly would do better financially as a private company
or in a combination with another public company.
I once proposed NILE as a candidate, but that stock has been so
vitiated by inappropriate buybacks that it’s useless for mergers.
Like JADE, NILE has a terrible Wall Street adviser which should be
identified and banned from the securities industry.
My family and I hold shares in DG Jewelry (DGJL) which was
placed in receivership in Canada long ago even though its
financial condition was excellent. I reckon that DGJL has
no debt and a mountain of accumulated cash presently.
Within a few weeks, JADE should be able to predict its 2012 results.
Chairman Yih should re-evaluate his offer in that light.
I feel he should either withdraw or substantially reduce his offer.
In the meantime, I think the market-price for JADE should be barely a dollar.
The $2 offer is unrealistically supporting the price at $1.69.
Very interesting commentary, thoughts. Thanks. I've felt that if the offer is not accepted that the stock would collapse. Never thought of possibility that Yih would lower the acquisition price to less than $2. Once offer is made, thought it would either go through or be refused. Yes, he could remove his offer. We still have Yuh who has purchased a substantial number of shares also. Agree that the stock has been manipulated, and many things mishandled. As for other companies purchasing JADE, doesn't seem likely now unless they are sitting still on the sidelines. As Dark has said, the dividend is holding much back.
I interpret the Reply as coming from Chairman Yih filtered through his adviser.
I can certainly understand why Yih wants to be rid of his public shareholders
and Wall Street connections as soon as practical.
At an appropriate time, I pray that he helps regulators to identify the culprits
responsible for the manipulations which occurred, especially the malicious lawsuit.
Such voracious vermin must be exterminated in order to restore investor confidence.
At age 72, Yih will likely wish to sell JADE’s businesses sometime after he takes
the company private. I urge him to DIRECTLY contact me when that time comes.
I expect my family to become the controlling shareholder of a jewelry enterprise.