Qingmei Group Holdings

(08-06-2013, 02:10 PM)CY09 Wrote: You must note that Qingmei is very likely to keep registering losses for the next few quarters and burning cash as well because of the oversupply of sports footwear.

Suppose the fair value is 0.13 sgd a share then, 100% above what is Mr Su is selling, Mr Su is willing to burn another 122 million sgd ( =0.18 sgd * 680 millions issued share) instead of dissolving the company now. He may expect to earn 1 billion sgd to justify this.

shareholders of Qingmei are merely shareholders of a non-operating shell company registered in Cayman Island. Its operating subsidiaries are very likely out of reach of shareholders of Qingmei.

The major shareholder can holding minimum shareholding in Qingmei but still get hold of all the cash(if it's real) in the operating subsidiaries.

(08-06-2013, 03:04 PM)cyclone Wrote:

(08-06-2013, 02:10 PM)CY09 Wrote: You must note that Qingmei is very likely to keep registering losses for the next few quarters and burning cash as well because of the oversupply of sports footwear.

Suppose the fair value is 0.13 sgd a share then, 100% above what is Mr Su is selling, Mr Su is willing to burn another 122 million sgd ( =0.18 sgd * 680 millions issued share) instead of dissolving the company now. He may expect to earn 1 billion sgd to justify this.

Collecting cash from share sale is a legitimate transaction. The money is clean and properly accounted.

There is no information of whether the private investor has any business dealing with Qingmei.

I wonder is it a legitimate activity - You sell the share to the person that has business dealing with your company.
I sell the share to you at low price and sell my company products to you at low low price. Can?
You resell the products at higher price and regain the cost of buying shares from me.

I am very interested to see who were the past buyers that Mr. Su sold to in the past 2 transactions. But it is highly likely, it will just be the popping up of a nominee account name in the top 20 shareholders or one of the many nominee increasing %

In the past I ignored my own understanding of the warning signs in those S-Chips that I owned. As a result I lost a few Hundred-Thousand Dollars, (my hard-earned Retirement Fund).

I'm still licking my wounds. The warning signs were there but I looked at the false "Fundamentals" and just "buy when people were fearful".

Those of you who are still vested in this company may like to take note of some of the warning signs.

1) According to the financial statement as on 31.03.14 its Cash & Cash equivalents was 388,857,000 RMB which is about SGD 67M. The current market cap. is about SGD 18M.

If I were the boss, I'll take SGD 20M and buy up the shares and delist the company and take the cash box of about SGD 67M. Is this not a warning sign?

2) 30.04.14 > announcement > Resignation of Chief Financial Officer, Tso Sze Wai, Jackson.

3) 26.05.14 > SU QINGYUAN, EXECUTIVE DIRECTOR continued to disposed off some of his shares.

4) There are more which you can see from SGX website.

The above look very similar to those S-Chips I owned & Lost.

Not Vested.

(31-05-2014, 08:11 PM)Retired@52 Wrote: In the past I ignored my own understanding of the warning signs in those S-Chips that I owned. As a result I lost a few Hundred-Thousand Dollars, (my hard-earned Retirement Fund).

I'm still licking my wounds. The warning signs were there but I looked at the false "Fundamentals" and just "buy when people were fearful".

Those of you who are still vested in this company may like to take note of some of the warning signs.

1) According to the financial statement as on 31.03.14 its Cash & Cash equivalents was 388,857,000 RMB which is about SGD 67M. The current market cap. is about SGD 18M.

If I were the boss, I'll take SGD 20M and buy up the shares and delist the company and take the cash box of about SGD 67M. Is this not a warning sign?

2) 30.04.14 > announcement > Resignation of Chief Financial Officer, Tso Sze Wai, Jackson.

3) 26.05.14 > SU QINGYUAN, EXECUTIVE DIRECTOR continued to disposed off some of his shares.

4) There are more which you can see from SGX website.

The above look very similar to those S-Chips I owned & Lost.

Not Vested.

I m sorry to hear your plight but certainly your observations should serve as warnings to many buddies out here.

Not Vested

Humans are very interesting. They believe what they want to believe, even if the facts say otherwise.

Totally agree, in fact if we believe the books of S-Chips here's a scheme to get rich.

1) Convince a bank to loan you 20M, buy over Qingmei (current mkt cap 16m) and you will have 67M cash.

2) Now use 20M to launch a hostile takeover of China fibretech (current mkt cap 16m). So now you have spent 40M but have obtained a total of 150M in cash from these 2 takeovers.

3) Now pay back the 20M you initially borrowed and be left with $130M. Use $35M to takeover Universal Resources to get the $109M present in its B/S.

Using this get rich scheme you will now have $200M cash and have paid off your 20M debt.

*For employees of any cash-rich companies reading this, feel free to market this idea to your directors (if they are that dumb enough) on how to "increase earnings of the company".

(01-06-2014, 04:05 AM)CY09 Wrote: Totally agree, in fact if we believe the books of S-Chips here's a scheme to get rich.

1) Convince a bank to loan you 20M, buy over Qingmei (current mkt cap 16m) and you will have 67M cash.

2) Now use 20M to launch a hostile takeover of China fibretech (current mkt cap 16m). So now you have spent 40M but have obtained a total of 150M in cash from these 2 takeovers.

3) Now pay back the 20M you initially borrowed and be left with $130M. Use $35M to takeover Universal Resources to get the $109M present in its B/S.

Using this get rich scheme you will now have $200M cash and have paid off your 20M debt.

*For employees of any cash-rich companies reading this, feel free to market this idea to your directors (if they are that dumb enough) on how to "increase earnings of the company".

The fact is that they are what they are speak for themselves. They are definitely smart.

(31-05-2014, 08:11 PM)Retired@52 Wrote: In the past I ignored my own understanding of the warning signs in those S-Chips that I owned. As a result I lost a few Hundred-Thousand Dollars, (my hard-earned Retirement Fund).

I'm still licking my wounds. The warning signs were there but I looked at the false "Fundamentals" and just "buy when people were fearful".

Those of you who are still vested in this company may like to take note of some of the warning signs.

1) According to the financial statement as on 31.03.14 its Cash & Cash equivalents was 388,857,000 RMB which is about SGD 67M. The current market cap. is about SGD 18M.

If I were the boss, I'll take SGD 20M and buy up the shares and delist the company and take the cash box of about SGD 67M. Is this not a warning sign?

2) 30.04.14 > announcement > Resignation of Chief Financial Officer, Tso Sze Wai, Jackson.

3) 26.05.14 > SU QINGYUAN, EXECUTIVE DIRECTOR continued to disposed off some of his shares.

4) There are more which you can see from SGX website.

The above look very similar to those S-Chips I owned & Lost.

Not Vested.

Another example after it hits home sadly which we see someone talking pure logic, so enough warnings have been given. Again there will be a few who argue that not all S-chips are like that. I understand but as retail investors we need to use probability to be on our side. And S-Chips field is full of landmines not worth venturing. We can try to play with dice but not something really bias.