Kingsmen Creatives

[KopiKat]

Drifting lower. Now down 9.5 cents.

Be greedy when other are fearful...not easy to practice.

After reading all the glowing comments on the company for the whole week, time to take a huge leap of blind faith... tikam time...

[palantir]

Wonder will $0.70 will be breached

[CityFarmer]

For a company which is heavily involved in projects (with many sub-contractors) and invested overseas, such fraudulent cases are not uncommon, but nonetheless very disappointing to know. It is very difficult to prevent such fraud, esp when employees collude with sub-contractors.

From the announcement, it appears that the KBJ case would have involved a senior manager, possibly with KE for a long time enough not to be reported to police. Normally, I would expect a police case in order to send out a strong signal to the rest of employees.

It is not uncommon to get internal issue settle down, without reporting to law enforcer, especially in China. It is rational to do so IMO, since the money seems recovered (only possible with cooperative of the employees i assume), with only a shortfall of S$29K.

The focus should be on Kingsmen Exhibits Pte. Ltd, which should be a more than just one-off event, rather than a norm among employee.

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Drifting lower. Now down 9.5 cents.

Be greedy when other are fearful...not easy to practice.

After reading all the glowing comments on the company for the whole week, time to take a huge leap of blind faith... tikam time...

I started to "tikam" already...

[safetyfirst]

Dividends for the past 2 years is 4 cents. Current dividend yield 5.7 to 6%.

If you strongly believe there is no more fraud, 71 cents now seems a decent entry.

If there are more frauds yet to be announced, then you will probably incur capital loss if you buy at 71 cents now.

The issue now is not about whether kingsmen is profitable or not (my person opinion is its earnings is decent). It is whether got more frauds to come or not.

[nickguthe]

[quote='nickguthe' pid='40412' dateline='1358480077']
For a company which is heavily involved in projects (with many sub-contractors) and invested overseas, such fraudulent cases are not uncommon, but nonetheless very disappointing to know. It is very difficult to prevent such fraud, esp when employees collude with sub-contractors.

From the announcement, it appears that the KBJ case would have involved a senior manager, possibly with KE for a long time enough not to be reported to police. Normally, I would expect a police case in order to send out a strong signal to the rest of employees.

It is not uncommon to get internal issue settle down, without reporting to law enforcer, especially in China. It is rational to do so IMO, since the money seems recovered (only possible with cooperative of the employees i assume), with only a shortfall of S$29K.

The focus should be on Kingsmen Exhibits Pte. Ltd, which should be a more than just one-off event, rather than a norm among employee.

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I can't wrap my head around how something like that can happen in KE. When an employee extends a personal guarantee to subcontractor B, what does it actually mean and how does it lead to under recognized costs?

[WolfT]

Drifting lower. Now down 9.5 cents.

Be greedy when other are fearful...not easy to practice.

After reading all the glowing comments on the company for the whole week, time to take a huge leap of blind faith... tikam time...

Uncle kopi, how many lots u manage to get? I only tikam 20lots...see how.

[brattzz]

my opinion for margin of safety is to take the 20 days pre-crisis market value n give a 10% discount... minus off the run-up...

which gives me, around 67cts!!

but Mr Market will say different!

[palantir]

I already started to "tikam" already...

Looks like alot of people started to "tikam" and buy at low price... price going up

[CityFarmer]

For a company which is heavily involved in projects (with many sub-contractors) and invested overseas, such fraudulent cases are not uncommon, but nonetheless very disappointing to know. It is very difficult to prevent such fraud, esp when employees collude with sub-contractors.

From the announcement, it appears that the KBJ case would have involved a senior manager, possibly with KE for a long time enough not to be reported to police. Normally, I would expect a police case in order to send out a strong signal to the rest of employees.

It is not uncommon to get internal issue settle down, without reporting to law enforcer, especially in China. It is rational to do so IMO, since the money seems recovered (only possible with cooperative of the employees i assume), with only a shortfall of S$29K.

The focus should be on Kingsmen Exhibits Pte. Ltd, which should be a more than just one-off event, rather than a norm among employee.

I can't wrap my head around how something like that can happen in KE. When an employee extends a personal guarantee to subcontractor B, what does it actually mean and how does it lead to under recognized costs?

For someone with contractor management, relationship will build-up over time, and "flexibility" and "personal guarantee" will follow. It is not a fraud IMO, but more of a excessive exceptions to company process and procedure. It is a risk after all, e.g. in this case when things went wrong.

[WolfT]

I already started to "tikam" already...

Looks like alot of people started to "tikam" and buy at low price... price going up

We know value when we see one,u know..fast hand fast leg.
just like after 7th cooling measure, buy property stock.