What did CCCL tell us with the dividend announcement?
-there is not takeover bid in the pipeline
-fthey want the stockprice to increase to 4-5
-they have no doubt about the pickup of sales in q2/q3/2013
-there is no doubt that they have 4mlj to pay for the dividends 1 year from now
Well, they seem to prefer dividends vs. buybacks which is quite rare within Chinese companies these days. It was also quite odd they chose 2 times/year model instead of quarterly 0.05 cent dividend.
So many think every Chinese company is or commits fraud. Considering there is a big housing market in China, their % of it is almost nothing, they announced a dividend, it is possible, but unlikely. The fraud issues have been out for years now, so if this was one, it would likely been found out by now.
Now consider all the products sold in China ,the USA, and elsewhere, the total fraud is very small. It is unlikely all the electronics, clothing , etc., gets a Chinese label in order to sell it for less than if they left off the label. Clearly most companies there do good business and profits. If they were claiming 20 billion profits, you might have to wonder based on the shares and share price.