S-Chips that have values

[Bubbachuck]

Hi,

As a value investors, we like to find unloved and undervalued stocks that have a lot of values in them and have the potential of becoming a winner in the long run.

I am still new in investing and I was not in the investing world yet when the S-Chips frauds happened. But still, I don't believe that all S-Chips are dis-honest and not trustworthy. So, I started this thread to have your list and opinions on the unloved S-Chips that are undervalued with a lot of values in them.

Here's the two on my list:
- Sino Grandness
- China Sunsine

[grubb]

Hi,

As a value investors, we like to find unloved and undervalued stocks that have a lot of values in them and have the potential of becoming a winner in the long run.

I am still new in investing and I was not in the investing world yet when the S-Chips frauds happened. But still, I don't believe that all S-Chips are dis-honest and not trustworthy. So, I started this thread to have your list and opinions on the unloved S-Chips that are undervalued with a lot of values in them.

Here's the two on my list:
- Sino Grandness
- China Sunsine

Can't dispute that there may be value in some s-chips, but I believe the odds for a value trap/fraud/downhill business is even higher than in the past. The simple reason is because the ones that are good legitimate businesses have already moved their listing to HK, e.g. XLX fertiliser, China Animal Healthcare, Sound Global, Sihuan etc.

If you are contrarian, why not buy into things like HK property, PRC banks or palm oil?

[theasiareport]

I've actually re-visited this idea multiple times. But I gave up. Its in the too hard pile.

Firstly, 25% of China based companies on the SGX have been de-listed or suspended. Secondly, even fund managers like Anthony Bolton with a team of analysts couldn't pick it up.

Can you make money sure?

But you won't be sleeping easy at night.

If a whole team of lawyers, analysts, fund managers and auditors have such as low success rate... one must assess his own probability you will be the one who can spot it.

I myself decided it was just not worth the time. Your mileage may vary. If you decide to go down this route, the best of luck to you!

Regards,
theasiareport.com

Hi,

As a value investors, we like to find unloved and undervalued stocks that have a lot of values in them and have the potential of becoming a winner in the long run.

I am still new in investing and I was not in the investing world yet when the S-Chips frauds happened. But still, I don't believe that all S-Chips are dis-honest and not trustworthy. So, I started this thread to have your list and opinions on the unloved S-Chips that are undervalued with a lot of values in them.

Here's the two on my list:
- Sino Grandness
- China Sunsine

[Curiousparty]

A lot of questions for these 2 S-chips.

Sinograndess - why the A/R increased so much? (the % increase was too "incredible").

Sunsine - why the need to go into hotel resort business when the core business is so profitable? as usual, management will cite "the need for diversification", etc.

S chips are "S-chips" for good reasons (IMHO). tks.

Hi,

As a value investors, we like to find unloved and undervalued stocks that have a lot of values in them and have the potential of becoming a winner in the long run.

I am still new in investing and I was not in the investing world yet when the S-Chips frauds happened. But still, I don't believe that all S-Chips are dis-honest and not trustworthy. So, I started this thread to have your list and opinions on the unloved S-Chips that are undervalued with a lot of values in them.

Here's the two on my list:
- Sino Grandness
- China Sunsine

[Bubbachuck]

Thank you all for your feedbacks. This will certainly help me in my decisions.

I know that there are many S-Chips that are already de-listed or suspended, but there should be a reason why these companies are still standing.

For Sino Grandness, I agree with Curiousparty that it is "incredible" that's why I got interested. If they will be able to successfully spin-off their Garden Fresh in HK, do you think it will prove that they are legit? Like grubb said, good legitimate business have already moved to HK.

More comments/opinions please. Hopefully, some good ones too?

[greengiraffe]

Buy the Best, forget the rest, the rest are trash...

http://www.valuebuddies.com/thread-1756-page-36.html

Sometimes I find some buddies' thoughts very conflicting - they know its a proven minefield and still choose to take that short and risky path rather than the long but comfortable one.

There is little difference to that of the hare vs Tortise story and we all know who eventually emerged as the victor.

GG

[Jacmar]

It's good that you are looking into these s-chips for learning purposes of what not to invest. You will learn a lot of it as time goes by. Go look at past VB posting of failed s-chips too and you will walk away with a different set of screening lenses. It just amazed me that some investors can come up with an intrinsic valuation and call it cheap when the fundamental data cannot be assured as true.

[Bluechipfan]

I know sunsine has been paying regular dividends for the past few years, maybe that's testament that the money is real? Maybe one day sunsine will also move to HK but if you are vested before the move, you could have reaped some profits?

[CityFarmer]

I know sunsine has been paying regular dividends for the past few years, maybe that's testament that the money is real? Maybe one day sunsine will also move to HK but if you are vested before the move, you could have reaped some profits?

I am one of the odd ones, who continue to hunt for the best, including the S-chips, albeit with more demanding criterias

I agree with GG comment, look for the best, rather be obsessed with "cash hold" and "undervalue" prices. May be a good starting point, is to read the S-Chip related posts in VB, especially those from Mr. d.o.g.

There are still S-chips investors in VB, even among successful senior VB buddies, e.g. Nick, and of course GG.

(vested on S-chip, CMHP and YZJ, and also the divested Sound Global)

[mohican]

Are there any buddies here who are active in HK/China stocks or can recommend a similar forum? I enjoy reading the sharing on this forum but the section on HK stocks is almost non-existent.