I hear what you are saying and you are certainly correct on the proper process in a regular Company but here the Board approves, Management (and the CEO is the culprit here) sets policy. We need to encourage, no, pressure the CEO to propose this change as a result of shareholder input. Without him driving this nothing will happen.
Glad to see that you agree with me now. This is terrible and they don't seem to realize that this reflects very badly upon them in the eyes of US investors. I do not know what it takes to wake these people up but as a minimum we should all write to the CEO office (not Helen) in the week of Oct 15. Perhaps a storm of letters/e-mails will help. As a tip, do not write in the usual blunt American fashion. Always start with a compliment, say on running the business which caused you to buy the stock, then point out the problems and loss of confidence by not defending the stock against manipulators and short sellers with all that cash sitting around. Dividends can come later but must be annually.
Well, the best I can say is to write to the Co and express your opinion.
You can contact the CFO assistant Fang Wang or pick a board member and write him through the secretary Ran Liu. As a tip, don't write to these people in the blunt American way making demands. First and always start with a compliment say on the running of the business (which caused you to buy the stock) then express your disappointment that the wealth is not shared with the shareholders, that the share price is not supported and that you are looking for them to do that very soon.
Right Old but that common sense is American. I was reading an interview with a Chinese business man recently and he said that with the economy slowing and the clampdown on banks and corruption the lending market has dried up and businessmen are running scared.
There is only one (Chinese) defense for that and that is retrench and most of all hoard cash. Big difference from last year. People have been predicting a Chinese crash for years. We see a correction now but worse may still come. I any case, I would be very surprised to see any dividend or buy back in the near to medium future.
Old, not Chinese math but US math. Most of these Chinese small caps do not act in the interest of shareholders. They just want a listing on a US exchange for prestige at home. Consequently, there is no transparency (trust the CEO, a ha, ha in the US), they do not defend the stockprice and do not share the wealth.GURE, which is even worse than this one was at the Rodman conference two weeks ago to try to drum up some institutional/big investor interest. They would not answer detail questions and had the attitude here is the big CFO, take his word and you all bow down now and buy the stock. They got nowhere.
So why buy the stock? Yes, I did too before I realized this but major investors do not and so these languish at grossly depressed prices. I can't see any change in this, the cultural difference is too great. So, theoretically you sit on a 5 or 10 bagger but you can sit on it indefinitely.
Can't agree more. Used to be a baseball and football fan. Most baseball games now play to empty stadiums but they are still awarding ever higher salaries. There are way to many games and they need to change the rules to move it faster. I can't understand why these advertisers continue to pay those ridiculous rates when so few are watching anymore. One of these days the whole thing will collapse. Football is still popular but like myself I have started to run into more ex-fans this year.
Obscene pay for what is after all a game, basket ball is even worse. The media fawning over these players many of whom can barely enunciate a sentence is just getting too much.
Well jet, wishing and hoping but a Dividend on Oct 1 is not coming otherwise the stock would have started to move up not down as it is again. This guy does not understand US markets. he thinks hoarding cash is good but here it is seen as bad, indecisive mgmnt, no planning, no stockholder reward which is why this stock has no major buyers here.
I was leaning more towards a buyback as the best way but Alan makes a compelling dividend argument. I would still see a buyback to get back to $2/share as a best first step, then annual dividends for sure. There is plenty of cash to do both.
I saw it on this board but now think it was a confusion of expectations because of the $2/shares given to execs of the acquired Company. Why those guys are not up in arms is a mystery.
Showing that management is delivering on their commitments?? What about his statement that he was going to support the $2 level? Obviously not happening, making the man an outright liar!
Maxk, they have been doing that (hoarding) for decades. There is always an excuse, tough times, govmt policy, possible future acquisitions etc., none are ever clarified or have such a small impact that they consume very little cash. Shareholders are repeatedly assured that they want to increase shareholder value to keep them quiet but except for very small gestures again to keep us quiet nothing happens and the cash keeps building up. It makes no sense which is why I think it is a cultural thing. Keep sending your e-mails pointing out the folly which is all you can do unless someone has a better idea.
After looking at a number of Chinese Co's and investing in some I have come to the conclusion that hoarding cash, the more the better is some sort of prestige thing in China. They all do it and apparently expect that people should buy their stock based on how much cash they hoard. Many could (as here) triple their stock price if they just declared a dividend (must be periodic) or bought back some stock. All you can do is send messages to the CEO office explaining that that is what they should do but do not expect any near term result since these guys are very stubborn, another Chinese trait. This sell-off reaction is a good example to use.
I changed my mind on this road show. It could be a good wakeup call because they will hear from big/institutional investors why they are not buying, mindless cash hoarding, no transparency, no dividends, no buybacks i.e. the same reasons as stated by us lowly retail investors in messages here and to the Co. In about a month assuming no results it will be time to send the I told you so.
1 How would anyone know? Only The Co itself can publish this info.
2 If you are an investor you should know this.
3 I was not being sarcastic. From your earlier posts you have given the impression that you MAY have an inside contact so if ANY messageboarder would know it should be you.
Thanks for the guess.
Well said!. I hope somebody tells him at the Conference.
In addition, send your e-mails to the CEO office, especially after they have come back and the visit as expected here is a dud.
You are certainly right but at a conference like that value investors look at their earnings and cash accumulating y/over/y and will ask why is there no dividend?
So much cash has now accumulated that the argument of needing it for the future holds no water anymore. There is and has been plenty for both for several years.
The growth investors will look at that and say why is there no buyback? Both will be hesitant to buy with this stubborn man's history. I don't think he is intentionally holding back shareholder value, he just does not understand that dividends or buybacks are the only way of doing this. Moreover, I believe he is coming here to try to convince investors that he is doing the right thing. He will fail and nothing will change until shareholders will finally get together to put joint action-pressure on him. If anybody goes there, try to get to his advisors/entourage, convincing them may get us some insider advocates.
Yes, a road show is good, I would also like to know where they are appearing. However, a dividend or buyback as a minimum supporting their promise of a $2 share price would be even better!
You can't be serious and short sellers are not the problem, lack of buyers is. Shareholders can and should pressure Management to increase shareholder value. It does not always work but doing nothing just increases the notion that no one cares and they can do whatever they want. Longs leaving if nothing is done is a much greater threat than short sellers.