Yangzijiang Shipbuilding (Holdings)

Thanks it's called Tianjin Good Hand Railway 000594 CH on Bloomberg

(30-05-2014, 04:36 PM)CityFarmer Wrote:

(30-05-2014, 04:32 PM)NTL Wrote: Either there are more news yet to be released, or the shortists are waiting for the right moment to shoot down the price. Any bad news is "good news" to them. Especially if it involved the CEO.

Is Yangzijiang really rely on Yuan alone, and without Yuan, it is nothing?

IMO, it is beneficial with Mr. Ren around, but I do believe that YZJ can continue without him, albeit more bumpy

P/S: I accumulated more at $1, alerted by my mobile peek just now

(vested)

what do u think is the fair value of YZJ?
at the price of $1, how much margin of safety do u think u have?

thanks

(30-05-2014, 05:46 PM)specuvestor Wrote: Thanks it's called Tianjin Good Hand Railway 000594 CH on Bloomberg

The weird thing is, if u go to Shenzhen exchange and key in the code, it is not valid, they have 593 and 595 thou.

Btw, if its a poison pen to get him out of the board, they are playing it very big! A buy over of shares would be a safer game.

I tried reading the announcement a few times, this is what I gather:

1) the company involved is not Ren private investment, it is a investment (share but back aka loan) arrangement through YZJ. It should be one of those HTm loans.

2) most of the accusations are levied at another investment company Taiyuan for seizing the bulk of shares and collaborating with Ren with various terms of contract and passing management rights to Ren, which both benefits from unfair terms of contract.

My thoughts:

I think there is room for judiciary battle. The crux of the matter is unfair terms and Insider trading and flouting of certain clauses of contracts. Am not a lawyer, but the bulk of accusations is leveled at taiyuan investment co.

Bad news is, it is not Ren's private business, it is through the investment vechicle of YzJ.

(30-05-2014, 07:07 PM)ValueMaster Wrote:

(30-05-2014, 04:36 PM)CityFarmer Wrote:

(30-05-2014, 04:32 PM)NTL Wrote: Either there are more news yet to be released, or the shortists are waiting for the right moment to shoot down the price. Any bad news is "good news" to them. Especially if it involved the CEO.

Is Yangzijiang really rely on Yuan alone, and without Yuan, it is nothing?

IMO, it is beneficial with Mr. Ren around, but I do believe that YZJ can continue without him, albeit more bumpy

P/S: I accumulated more at $1, alerted by my mobile peek just now

(vested)

what do u think is the fair value of YZJ?
at the price of $1, how much margin of safety do u think u have?

thanks

Assuming HTM is completely written-off, the fair value of YZJ should be slightly above $1, with shipbuilding business valued at PE 7.

I will let you judge on the MOS.

I am with CF, though I have no vested interest at the moment, but any further price weakness posses good opportunity for me to fire my bullets. I don't know Ren well, but I think he is a much respected person from the way he manages YZJ, I think and hope that he is ok.

(30-05-2014, 10:19 PM)valuebuddies Wrote: I am with CF, though I have no vested interest at the moment, but any further price weakness posses good opportunity for me to fire my bullets. I don't know Ren well, but I think he is a much respected person from the way he manages YZJ, I think and hope that he is ok.

Not contributing anything here but as I like to say, we'll see.

http://www.eeo.com.cn/2014/0527/261082.shtml

Quote:经济观察网记者获悉，任元林、泰兴力元在 2013 年 7 月对受委托人设定了公司“始终处于盈利状态”、“必须确保天津国恒 2013 年度盈利”、公司股票不得“连续 3个交易日下跌，或跌至 1.5 元/股以下”等目标，并根据对上述目标的判断于2014 年 1 月 15 日购入公司股票 18047.016 万股。公司认为，任元林、泰兴力元对受委托人设定的目标中小投资者并不知晓，任元林、泰兴力元根据上述信息于 2014 年 1 月 15 日购入公司股票的行为涉嫌内幕交易。

The accusation is insiders' trading. Ren Yuanlin had set the following conditions for 天津国恒.
1. 天津国恒 must ensure that it will be profitable in 2013
2. the share price cannot drop consecutively for three days.
3. the share price cannot be lowered than $1.5
And the above information is not disclosed to other minority shareholders.

Armed with the information, Ren Yuanlin and 泰兴力元 bought in 天津国恒 shares in Jan 2014.

(30-05-2014, 11:11 PM)yeokiwi Wrote: http://www.eeo.com.cn/2014/0527/261082.shtml

Quote:经济观察网记者获悉，任元林、泰兴力元在 2013 年 7 月对受委托人设定了公司“始终处于盈利状态”、“必须确保天津国恒 2013 年度盈利”、公司股票不得“连续 3个交易日下跌，或跌至 1.5 元/股以下”等目标，并根据对上述目标的判断于2014 年 1 月 15 日购入公司股票 18047.016 万股。公司认为，任元林、泰兴力元对受委托人设定的目标中小投资者并不知晓，任元林、泰兴力元根据上述信息于 2014 年 1 月 15 日购入公司股票的行为涉嫌内幕交易。

The accusation is insiders' trading. Ren Yuanlin had set the following conditions for 天津国恒.
1. 天津国恒 must ensure that it will be profitable in 2013
2. the share price cannot drop consecutively for three days.
3. the share price cannot be lowered than $1.5
And the above information is not disclosed to other minority shareholders.

Armed with the information, Ren Yuanlin and 泰兴力元 bought in 天津国恒 shares in Jan 2014.

Hong kan liao

China is a complicated place. When you have a case like this and accusations are being levelled, no matter if business tactics are for protection of certain party interests, it will get very complicated.

For me it is very simple - the entire China ship building industry is in some sort of doldrums. How can one company be shining so brightly above others. On a big picture basis it is highly puzzling.

In any event, the quality of China listings on SGX has always been questionable. Eric Ang, the outgoing banker at DBS investment banking division (may not be the exact title and division) recently made a statement that S chips are history and unlikely to make a comeback.

In the midst of all these uncertainties, better be safe than sorry. I simply have no faith in any Chinese companies as the corporate governance remains highly questionable. The last thing that you need is for trading in shares to be halted or suspended.

If even it is business as usual, it is highly likely that YZJ will be derated as a result of this episode.

Not Vested
GG