Sino Grandness

(19-10-2014, 11:10 PM)ValueBeliever Wrote: If HK rejects Alibaba, I m sure its got a good enough reason to reject SGrand (=why wait if its a good deal to list in HK).

FYI, Alibaba was rejected for dual-class shareholding structure. Is Sino having the same issue, and is rejected with the same reason? I seriously doubt so, although I don't know the company well.

(19-10-2014, 11:10 PM)ValueBeliever Wrote: All I heard from Singapore official comment is HK people are not realistic - haha! Wasnt it true that Singapore aspire to be like street smart HKer! How history change? So much for China is good for Asia!!

I don't know the source for the statement. I reckon the statement means the protesters, rather than HKers as a whole. For those familiar with Hong Kong, will agree that HKers are very pragmatic. I admire that they run, instead of walk, when moving along streets, in order not to waste time travelling. I hardly able to catch-up

(19-10-2014, 11:10 PM)ValueBeliever Wrote: My own observation of chinese mainland stock is that they are untouchable as the well connected played them to ridiculous level. Corruption in imbue into the system and it gets into the stock market so much that that they way the chinese would play it. Its like Malaysia CLOB. The PE ratio is off the chart and lets not talk about book value!

There are true in the statement, but on the other hand, major foreign funds are still eyeing on China stocks, and remain vested. It might also true on the flip side of the coin, thus worth a deeper yet caution look into the China stocks, IMO

down 8% early morning. anyone monitor which counters selling out? i using stan chart so can't track it's from who.

Some information from another website. It may be the reason of recent sell down?
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Value Investors Club has stated on 4 Sep 2014 that Garden Fresh blatantly inflated sales and this can be easily discovered:

“Even modest improvements in coverage or basic IPO due diligence, such as obtaining Euromonitor or Nielsen data, should result in regulators, underwriters, and investors agreeing with our conclusion that earnings are massively overstated. We believe this will most likely lead to a failed IPO, ultimately rendering shares of Sino Grandness practically worthless.
Major investment banks with analysts covering China juices companies subscribe to Euromonitor. Furthermore, key beverage manufacturers listed on the HKEx, such as Tingyi, Uni-President, and China Huiyuan, reference Nielsen data in their filings. We believe that if and when regulators, underwriters, analysts and investors inevitably scrutinize this data, they will see a company materially overstating revenues which will most likely derail the IPO.”

(21-10-2014, 10:40 AM)kikababoo Wrote: down 8% early morning. anyone monitor which counters selling out? i using stan chart so can't track it's from who.

(03-10-2014, 06:57 PM)LLS Wrote: the valuations look so cheap, I want to buy this stock but I worry of it being another S-chip scandal
any advice?

yes, read the report at this link https://www.dropbox.com/s/84s7q9ktbps22q...4.pdf?dl=0

Will you able to give the source link? Thanks.

Regards
Moderator

(21-10-2014, 02:22 PM)Max12345678 Wrote: Some information from another website. It may be the reason of recent sell down?
-----
Value Investors Club has stated on 4 Sep 2014 that Garden Fresh blatantly inflated sales and this can be easily discovered:

“Even modest improvements in coverage or basic IPO due diligence, such as obtaining Euromonitor or Nielsen data, should result in regulators, underwriters, and investors agreeing with our conclusion that earnings are massively overstated. We believe this will most likely lead to a failed IPO, ultimately rendering shares of Sino Grandness practically worthless.
Major investment banks with analysts covering China juices companies subscribe to Euromonitor. Furthermore, key beverage manufacturers listed on the HKEx, such as Tingyi, Uni-President, and China Huiyuan, reference Nielsen data in their filings. We believe that if and when regulators, underwriters, analysts and investors inevitably scrutinize this data, they will see a company materially overstating revenues which will most likely derail the IPO.”

(21-10-2014, 10:40 AM)kikababoo Wrote: down 8% early morning. anyone monitor which counters selling out? i using stan chart so can't track it's from who.

Believe the source link would be https://www.dropbox.com/s/84s7q9ktbps22q...4.pdf?dl=0. If you meant the link to the actual site, I don't think thats possible as VIC is not open to public.

(21-10-2014, 03:29 PM)CityFarmer Wrote: Will you able to give the source link? Thanks.

Regards
Moderator

(21-10-2014, 02:22 PM)Max12345678 Wrote: Some information from another website. It may be the reason of recent sell down?
-----
Value Investors Club has stated on 4 Sep 2014 that Garden Fresh blatantly inflated sales and this can be easily discovered:

“Even modest improvements in coverage or basic IPO due diligence, such as obtaining Euromonitor or Nielsen data, should result in regulators, underwriters, and investors agreeing with our conclusion that earnings are massively overstated. We believe this will most likely lead to a failed IPO, ultimately rendering shares of Sino Grandness practically worthless.
Major investment banks with analysts covering China juices companies subscribe to Euromonitor. Furthermore, key beverage manufacturers listed on the HKEx, such as Tingyi, Uni-President, and China Huiyuan, reference Nielsen data in their filings. We believe that if and when regulators, underwriters, analysts and investors inevitably scrutinize this data, they will see a company materially overstating revenues which will most likely derail the IPO.”

(21-10-2014, 10:40 AM)kikababoo Wrote: down 8% early morning. anyone monitor which counters selling out? i using stan chart so can't track it's from who.

Noted. Thanks.

(21-10-2014, 04:00 PM)heifien91 Wrote: Believe the source link would be https://www.dropbox.com/s/84s7q9ktbps22q...4.pdf?dl=0. If you meant the link to the actual site, I don't think thats possible as VIC is not open to public.

(21-10-2014, 03:29 PM)CityFarmer Wrote: Will you able to give the source link? Thanks.

Regards
Moderator

(21-10-2014, 02:22 PM)Max12345678 Wrote: Some information from another website. It may be the reason of recent sell down?
-----
Value Investors Club has stated on 4 Sep 2014 that Garden Fresh blatantly inflated sales and this can be easily discovered:

“Even modest improvements in coverage or basic IPO due diligence, such as obtaining Euromonitor or Nielsen data, should result in regulators, underwriters, and investors agreeing with our conclusion that earnings are massively overstated. We believe this will most likely lead to a failed IPO, ultimately rendering shares of Sino Grandness practically worthless.
Major investment banks with analysts covering China juices companies subscribe to Euromonitor. Furthermore, key beverage manufacturers listed on the HKEx, such as Tingyi, Uni-President, and China Huiyuan, reference Nielsen data in their filings. We believe that if and when regulators, underwriters, analysts and investors inevitably scrutinize this data, they will see a company materially overstating revenues which will most likely derail the IPO.”

(21-10-2014, 10:40 AM)kikababoo Wrote: down 8% early morning. anyone monitor which counters selling out? i using stan chart so can't track it's from who.

Read through the report at
https://www.dropbox.com/s/84s7q9ktbps22q...4.pdf?dl=0

really make one worry about investing in China companies!!

The report is very comprehensive indeed

(21-10-2014, 04:35 PM)Max12345678 Wrote: Read through the report at
https://www.dropbox.com/s/84s7q9ktbps22q...4.pdf?dl=0

really make one worry about investing in China companies!!

The report is very comprehensive indeed

I briefly run thru the report. It seems creditable with reliable references to Euromonitor and Nielsen.

(not vested)

Indeed, I have read through the report myself and found it to be very comprehensive.

I feel that with investing in companies, there are 2 key points. Do your due diligence and asking ourselves a question before buying, 'Will this stock allow me to sleep well at night?'

Given how my initial buy of Sino Grandness was more of a smart buy as I felt there was a mismatch in value and market price due to the uncertainty of the listing of the Garden Fresh IPO, I bought the stock. Furthermore, after all the news I had been reading on NextInsights about how management is like during roadshows etc, I thought the problem of fraud is quite unlikely with this company. In this regard, I did nearly no homework on the company fundamentals as it was supposed to just be a short term profiteering from the mismatch.

Learning point: Do my homework and in the event that I see such a report, I can at least confidently say that I have faith in the company I am invested in. Thankfully, as it was supposed to be a smart buy, I did not take on a huge position. Hence, losses are minimal (yes I decided to just cut loss, regardless of whether the report is true/false)

(21-10-2014, 04:35 PM)Max12345678 Wrote: Read through the report at
https://www.dropbox.com/s/84s7q9ktbps22q...4.pdf?dl=0

really make one worry about investing in China companies!!

The report is very comprehensive indeed