So let me get this straight. The plant was shut down in October of last year and they announce a share buyback in November (even though they were restricted from buying any shares).
I think it is time for Foo to leave.
Why should anyone be buying? Same reason why people have no problem paying $700 for a fake company like Netflix. When people expect a stock to go up, they buy. If they expect it to go down, they sell. Simple as that. That's what most analysts do anyway. They are like sheep. There's always a bigger fool around the corner.
Unless you are a professional of course. Then you do deep deep DD, look at valuations and potential catalysts, assess the odds etc.
Well, I think we might hit the jackpot here. Each to their own. But you heard it from me.
You don't have a case. What you have is brain damage.
Besides, China is not a communist country economically.
They got the segment reporting fixed now in the latest 10-K. In the past they translated consolidated results from Chinese GAAP to US GAAP when it was time to report, losing the segment information in the process.
You need to understand that an auditor doesn't tell you much in general. It's not like the top-4 are legit and all the rest are frauds. If only life were that simple. Of course that's what the top-4 want you to believe, but it's nothing more than an illusion. I assume it's your common sense approach talking again. LOL.
Yep, you got it all figured out.
My top 3 are SIAF, NUIN and HERB. They are all OTC, I guess that's why they are so depressed.
CCCL is my number 4. Still huge value here.
CGA and KGJI are number 5 and 6 now. Still good bets but I don't have to own them because I have better.
I think you will do well. You may want to get a small position in HERB as well because they plan to do a merger which will probably result in a listing in Shanghai. Huge potential if they pull it off.
Well, it's pretty obvious by now that you lack a basic understanding of responsibilities, obligations, the law and regulations. You cannot make money this way. And yet you still think you know better than me. The sheer arrogance.
"The board of directors are their friends...... and most have a vested interested in this company."
Those with a vested interest cannot vote. Ultimately it's the shareholders who have to vote an any proposal. You think this is the Wild West or something?
You can sue them in China, or America, or wherever it is the company is registered. Virgin Islands or something? It doesn't really matter.
You will just have to accept the possibility that perhaps the BOD/management has no interest in ripping off the shareholders for far below book value, the legal hassle that comes with it, while losing all that cash in the process. And for what? The share price will take care of itself when given enough time. At least that's the theory. They may be pressed now to do more, obviously.
It's far more plausible than the notion that the cash is not there. I mean, really? How do you come up with this stuff? Just because there were some cash related problems with some companies in the past doesn't mean that all those hundreds of other companies don't have the cash. You have two dozen coppers patrolling the area these days and you are suggesting that they are robbing us in broad daylight. Not very likely.....
I have said what I wanted to say. No-one is forcing you to buy the stock. He who gets it right will be rewarded. There's about a 90% probablility it will be me, not you.
I just want to add, should they decide to go private for $6/share, then it's still a rip-off. They could still be facing lawsuits, for breaching their fiduciary duty.
In practice, most shareholders will gladly accept the deal. And there is no court in the world that will say $6 was a bad deal for the shareholders. But it's still a rip-off for those shareholders who are commited to this company. Besides the fact that you almost completely drain the company of cash which they need for expansion.
"So I ask for the third time, why doesn't the company go private in which management stands to make a bundle for themselves in a riskless transaction ? "
Your logic is flawed. First of all, every director has a fiduciary duty to act in the best interests of the shareholders. So they can't go private for $2/share when they have $8/share net cash in the bank. Plus all the rest. Now, I know that some companies have gone private below book value, but that's complicated. That's where cash flow and profitability comes into play amongst many other things. I'm simply explaining the rules of the game. They cannot rip off the owners of the company.
And you want them to honor the rules, don't you? Otherwise it would just be another fraud, ripping off their own shareholders.
Secondly, I don't think they have an incentive to go private. They are looking at international expansion. They want a listing on Nasdaq. Etc.
But if there is an offer of say $4 or $6 then I guess most shareholders will be happy. It's possible, but I don't think it will happen. They are trying to run a business here, and most managers will not let a depressed valuation get in their way or determine the future of the company.
HERB is a bit problematic. Being a typical Chinese company, trading on OTC, no market maker activity, owned by the government, internal controls not effective. Other than that there is massive value here.
I increased my position significantly after they announced plans in the 10-K to merge with Gansu Yasheng (the Shanghai listed entity) which is owned by the same parent company. We might just hit the Jackpot here, but it could take a while.
You are emotional since you disagree with basic common sense of investing...."if it's too good to be true, the often it is"....
Well let me tell you what Einstein had to say say about "common sense", I quote
"Common sense is the collection of prejudices acquired by age eighteen."
And it certainly applies to your example.....
So any company trading at a P/E of 1 or less has to be a fraud then? If only life were that simple, we would all be rich. On the contrary, you will find that none of these severely depressed stocks will ever be accused as being frauds simply because there's no money to be made by the short sellers. Especially on OTC, which is the main reason for NUIN's low valuation. They are not alone, you know. But right now they are one of the cheapest. But there's a another reason for that. As I explained before, we had a big seller for the past year.
And I made a point about management and you can't answer a simple question. Why won't management buy $8 for $1 ? How can a company even exist wth a negative TEV?
Sure, I can answer any question you may have. You mean Total Enterprise Value? EV is simply the market cap + debt - cash. Any company with a load of cash and little debt has a negative EV. There are lots of examples in the China space, obviously. I don't get your point, it's a positive for us investors because it means there is a lot of value.
Why won't they buy back $8 for $1? What do you mean? Even if they decide to repurchase stock then they can't buy more than 25% of average daily volume. And with this liquidity it's going nowhere. Why no dividend? They are still trying to figure out the growth story. They may need the money to acquire a bottling company. Perhaps we will get a dividend but it may not be easy with a VIE.
So you think you have all the answers but in reality all you can do is resort to generalizations. Your common sense approach. LOL. Einstein was right, he knew that the average person is stupid.
Haha... I can't help you with that. There's enough liquidity to just place market orders, LOL.
I always liked you, unwired. Best of luck :-)
If you can't buy the stock because it's cheap, then you can buy it because of fundamentals. If you can't buy it because of fundamentals, then you can buy it for technical reasons. Because it will bounce off 0.70. And if you can't buy it for technical reasons, then you can buy it because any kind of news could cause a rally here.
I don't need to get lucky on this one, although it always helps.
Incidentally, the only reason why the stock jumped to 0.85 briefly is because I and a few friends were buying. There is no-one else buying. Absolutely no-one has a clue...
We will spread the word some more, but it isn't a high priority. Eventually the stock will go up anyway. The only question then becomes, who will benefit?
Didn't I tell you that you would make a lot of money on SIAF?
The Dutch was right. And this is just the beginning.
I can't tell you to sell your ABAT shares now. I have to respect the people who choose to fight the company. Well, it's a mess.
But I have 2 more value plays for you, to help you make some money. HERB and NUIN. I think NUIN will be first to rally and HERB will come later.
As I said before, they will go up with or without you. So I'm not doing this for me.
So how much money did you make these past 3 years? I bet you lost your pants on quite a few of these Chinese stocks. So all there is left now is resentment and generalizations. Didn't anyone teach you that you shouldn't get emotional about your investment decisions? It's the quickest way to the poor house. So I would tone it down a little if I were you. Instead of displaying all this arrogance. It never seizes to amaze me with you Americans.
Please join the China Unlimited board on I-H-U-B. You will find lots of discussion there about this stock and other value stocks. A few more challenges as well. You will get nothing out of this message board except a few of the usual suspects, posting nonsense.