30-01-2014, 12:21 PM
(30-01-2014, 10:45 AM)dzwm87 Wrote: Always tempted to look into this company since management has been open with IR meetings and fashion show. But I think the lesson learned for me is to always look at the company wearing the owner's hat.
Balance sheet is rich with cash and valuations are so low yet there has been no insider purchase while management is trying to convince the public that things are going to be better. Yet, they need to raise bonds at illogical rates with SHK.
I think the current issue is not as simple as it is. It has been 1 month since the last interest payment in Dec 2013. Management is not stupid. If the company's cash is real, they would have done all they could to get the cash. Now SHK is calling for full redemption.
When things doesn't square, it is always better to walk away.
Sometimes i think it is very important to exercise common sense during investing. For example, if the company is flooded with cash, the share price is trading below net cash per share, and the company is not taking action to do share buyback, then it is an obvious red flag... but many people choose to ignore it. Poor souls, i hope nobody in this forum got caught in this leaking boat