S-chips make a comeback in Singapore

[iisterry]

...

Well, it ranges depending on the intent of the filing.

Some are use to circumscribe labor laws...

http://www.businessweek.com/magazine/con...011001.htm

...while others are simply fraudulent earnings report...

http://seekingalpha.com/instablog/409241...ec-filings

...so did Madoff. He had another set of reports which were always on his person.

It is an interesting sector for sure. When the corporate scandal broke up in 2009, some counters were down 60-80%.

They also have crazy multi-baggers like Z-obee which jumped 20 over fold from 3c to 60+c after dual listing.

[ichiran]

Appreciate if someone can share on how to extract information as to whether a company had conducted rights issue / placement of shares to raise capital?

Tried SGX website - Announcements, Corporate Action etc. but don't seem to be able to get that information.

[Musicwhiz]

Yes it's true about having more than one set of books. This usually happens in countries where there is rampant corruption so the expenses paid to officials can be classified as import duties or business dealings expenses or such. But when reporting to tax authorities you should leave out such items.

Another example I can think of are "red invoices" for Vietnam. When you purchase goods you are supposed to be issued a red invoice by the vendor so that you can claim the expenses as input tax (similar to our GST here). But smaller vendors do not issue red invoices, so in the end what can be actually claimed versus what can be claimed on paper are different. There are other loopholes which allow the locals to exploit tax laws to their advantage, of course. But regulations may change on a whim or a tax audit may be conducted so it becomes a merry-go-round between th authorities and companies. Of course, a large enough payment will "settle" these audits.

As for rights issues, there should be more than enough information on SGXNet on those.

[mikh]

Thanks MW and iisterry. So it would seem to me that although multiple sets of books are generally for fradulent reasons, and a likely indicator of such practice, it should not be technically illegal per se ie. the books should add up and synchronize, being only for providing a different perspective. For example, if a regulator knows the existence of a second set of books, it is a "crime" only if they don't add up.

[lonewolf]

Appreciate if someone can share on how to extract information as to whether a company had conducted rights issue / placement of shares to raise capital?

Tried SGX website - Announcements, Corporate Action etc. but don't seem to be able to get that information.

I usually look at the announcement page; but it can be extremely tedious.

You can also for the quarterly (some semi-annual) results issued by the companies. There is a section on the change in the share capital of the company. So details of any rights issue / placement / bonus / share options etc will be in there.

[ichiran]

Hi Lonewolf,

Thanks for your help!

Yeah, I agree that using the Announcements page can be very tedious...SGX should improve their system interface!

[cif5000]

SGX should improve their system interface!

Go to sgx website -> Listed Coy -> Corporate Action.

Do your filter using Category and Coy Name. You should see the right issues.

[lonewolf]

Go to sgx website -> Listed Coy -> Corporate Action.

Do your filter using Category and Coy Name. You should see the right issues.

You can see rights issue but not placement. And options are only reported in the Results announcement. So for me, it still the most efficient way of looking at the change in capital of the company.

[cif5000]

Go to sgx website -> Listed Coy -> Corporate Action.

Do your filter using Category and Coy Name. You should see the right issues.

You can see rights issue but not placement. And options are only reported in the Results announcement. So for me, it still the most efficient way of looking at the change in capital of the company.

You are right that you can see only the rights but not placement in the Corporate Action. To see placement and share option, you can go to Announcement -> Change in Capital and do the usual filter.

Going through quarterlies and annuals is a must, but what I am saying is that the SGX website does provide a short-cut to look at these changes.

[SLC81]

It will be very profitable but you also can lose lot of money if you are late in the game so do remember the 10% cut loss rule

Amen to that.

1)Foreland (in at 13c, divested at 6.5c)
2)China Fibretech (in at 8c, partial divestment at 9.5c)
3)Eratat Lifestyle (in at 14.5c, partial divestment at 25.5c)
4)Timewatch (is this an S-Chip?)

Most of TimeWatch business is from Greater China , of which 25% FY10 is from watch retailing in Hong Kong (they actually open the retail store to sell watches to Chinese Tourist in Hong Kong who want to have the prestige of buying watches oversea). The reporting currency is in $HK

Since the brand, market and the founders are from China so it make senses to have them categorized as S-Chip but if you compare to other such as Eratat and Foreland, actually, Timewatch does not seems S-Chip after all.

Btw, There is a trading halt on Timewatch, just about when i want to buy some shares... let see what will come out