China Minzhong Food Corporation

SGX will as usual wayang , but do nothing like what they did to the countless con-companies. SGX had made their monie thru all these con listing.

(26-08-2013, 09:19 PM)propertyinvestor Wrote:

(26-08-2013, 09:14 PM)Wildreamz Wrote: I am starting to think I need to learn forensic accounting in order to invest properly next time.

Seriously, if their fraud is really so blatant (faking their largest customer etc), why no one before us, GIC or Indofood, realized before hand? What are the buy side analyst doing? Why didn't I realize before hand? Gosh.

Lesson learnt, when investing in a risky asset like S-Chips, do ALL detective work possible by yourself.

China Minzhong is my single largest holding, my second largest right now is only half its size. Was taking Warren Buffett advice that "too much of a good thing may be wonderful" forgetting to only "invest in what you (REALLY) know".

Im just curious, why didnt you bailed out when GIC bailed out as well?

One of my post in the past:-
Audited AR?
http://www.marketwatch.com/story/crazy-e...ory_insert
‘To do an effective audit, the auditors would have to be in every single place all of the time watching every single bean come in and out of the company, which is clearly impossible.’

http://infopub.sgx.com/FileOpen/CMZ_Repl...eID=253897

http://infopub.sgx.com/FileOpen/CMZ_Pres...eID=253898

Guys, a question, do you usually put stop loss on your stocks? Maybe at 20% lower than last closed price?

(26-08-2013, 09:30 PM)Wildreamz Wrote: http://infopub.sgx.com/FileOpen/CMZ_Repl...eID=253897

http://infopub.sgx.com/FileOpen/CMZ_Pres...eID=253898

Guys, a question, do you usually put stop loss on your stocks? Maybe at 20% lower than last closed price?

Stop loss is a must! When you buy a stock, u should already have a exit strategy...
Perhaps it is easy to talk on hindsight but I would cut loss when there is a chance.
Protect your capital first!

(26-08-2013, 09:46 PM)WolfT Wrote: Stop loss is a must! When you buy a stock, u should already have a exit strategy...
Perhaps it is easy to talk on hindsight but I would cut loss when there is a chance.
Protect your capital first!

Never knew fundamentals of a company could change overnight (in this case.. well its all a lie).

(26-08-2013, 09:14 PM)Wildreamz Wrote: Seriously, if their fraud is really so blatant (faking their largest customer etc), why no one before us, GIC or Indofood, realized before hand? What are the buy side analyst doing? Why didn't I realize before hand? Gosh.

No need to feel awful. Everyone makes mistakes. Live and learn. What doesn't kill you, will make you stronger.

One thing to remember regarding GIC is that they invested a long time ago. It is entirely possible that at that time, China Minzhong was fully legitimate. However the company's farming acreage quadrupled in size in the subsequent years.

Most likely, GIC did not check as thoroughly after investing. It's like buying a 4-block complex of buildings when only the first block is up - if the first block checks out, you pay up and assume the other 3 upcoming blocks will be of the same quality. However, there is no guarantee that these future blocks will indeed be of equivalent quality unless you inspect them as closely as you did the first block - which you probably won't.

I realized this last year and got out. The loss was painful, but I've had worse. With Minzhong I broke 3 simple rules of thumb. It had a limited track record, the managers were not the largest shareholders, and the business model consumed cash instead of generating it. China Minzhong is/was a reminder that I should not try to outsmart myself too often. Rules exist for a reason - to keep us out of trouble! Rules can be broken, but at one's own peril.

Wildreamz Wrote:I only bailed in after Indofood bailed in..

As for Indofood, the controlling shareholder is Anthoni Salim, the youngest brother of Andree Halim, who controls QAF. Their father is the late Sudono Salim a.k.a. Liem Sioe Liong. Why is this relevant? Because in June 2005, QAF bought 55% of China Food Industries, which was subsequently discovered to be a fraud. Clearly, QAF didn't do its due diligence properly, and now, it seems, Indofood didn't either. Does this hands-off approach to investing run in the family? Only the brothers themselves know for sure.

All S-chips reputation will be hit by this.

When substantial shareholders pull out, be extremely careful.

will there be a s-chip sell down tomorrow?

(26-08-2013, 10:01 PM)felixleong Wrote: will there be a s-chip sell down tomorrow?

Purely speculating, yes. In fact, there is already a sell down today.

read the beginning part of this long 30++ pages of thread, a lot of brain cells were used up in this lengthy thread

noted our dear LTA statutory board also participated by buying some 250m++ shares of CMZ..

(26-08-2013, 02:41 PM)safetyfirst Wrote: whose bread i eat, whose song i sing.

I dont really blame the auditors, in my own line of job, if i express my unbiased view all the time, i would end up offending many people and be out of job pretty soon.

Sometimes when i suggest what is the best course of action in my area of expertise, and my boss who obviously knows nothing in these areas, insist that i follow his instructions. I smile and i say "yes boss". Such is life. Haha when i earn enough to buy small pieces of good businesses, then i can kiss my boss goodbye. That was my thoughts when i was younger, now, i take great pleasure in gloating over silly views by my boss, afterall, it is to his disadvantage, not mine.

safetyfirst, intrigued by yr wisdom..r u a businessowner now?