Foreland Fabrictech

[karlmarx]

It is not improbable that the chairman took scripts because there is not enough cash in the till.

[sgmystique]

Well karlmarx, what you say might be true...

However, I have personally met up with Mr. Tsoi Kin Chit (CEO) and Mr. Simon Wong (CFO) and had extensive discussions with them during the AGM in April this year. They did not seem to be trying to pull a fast one. Having met management and having spent a couple of hours interacting with them I am quietly sure that my money invested in Foreland is in good hands.

I had sent across a long mail to them prior to the AGM detailing the queries I had and they had presented painstaking replies to each of my queries during the AGM. You can go through these interactions in my earlier posts in this forum.

But then "Only time will tell"...

It is not improbable that the chairman took scripts because there is not enough cash in the till.

[bb88]

Hit an all time low today. Averaged down (again) but still rather deep in the red. Hope I'm not catching a falling knife... I wonder who has been offloading his/her position in the past 1-2 weeks.

In the next 2 months or so there should be an update on the new factory. Let's hope there'd be no further delay.

[CY09]

Hit another low today.

Noticed the selling transactions has been in blocks of more than 100 lots. Wonder who is it.

[CityFarmer]

Hit another low today.

Noticed the selling transactions has been in blocks of more than 100 lots. Wonder who is it.

People are generally pessimistic on apparel market in China with an oversize national inventory.

It is not difficult to understand why people are selling.

[sgmystique]

Seems like some major investors are moving out due to the not so optimistic forecasts for 2H12. We can only know the changes in stakes when we get the Annual Report for 2012 next year...Anyways hope arises from the fact that the CEO has not decreased his stake but increased it after getting his dividends in the form of scrip...

I continue to hold on and gradually increase my stake in Foreland as the price keeps sliding down...

As the saying goes:

"The Darkest Hour Is Just Before The Dawn"...

[Greenrookie]

Sgmystique,

Folly or not, only time will tell, I am doing the same as yours, will be looking to accumulate further as it falls further, but I guess the next round will probably be my last before the holding hit my discomfort level. Waiting for 6 cents level if it does get there to accumulate further.

[CityFarmer]

A business update from FORELAND FABRICTECH HOLDINGS LIMITED

http://info.sgx.com/webcorannc.nsf/Annou...endocument

Key messages are captured below. Basically aligned with news report on apparel market.

"Generally, the weak economic sentiments as disclosed in the Group’s last announcement on 7 May
2012 had led to a deteriorating business environment. In 2Q 2012, the Group has seen a slowdown
in the textile industry. Both the demand and selling price for the high-grade textile products,
including both apparel and umbrella products, have been pressured by the weak business
conditions, which in turn impacted the Group’s revenue and profits. It is anticipated that the Group
will report a significantly lower net profit for 2Q 2012 than that of 2Q 2011"

[sgmystique]

Wow!!!

The price has been really bashed down...I can understand a fall in the share price in reaction to the Profit Warning announcement but with the price down to a new all time low of S$0.059 (Mkt. cap of just over S$31 million) one is getting too good a fruit...

And for a company with S$54 million in cash, no debts and which has reported that they are going to make smaller profits...not a loss...

I really don't know what to think...

Anybody with insights to share has my complete attention and regards...

A business update from FORELAND FABRICTECH HOLDINGS LIMITED

http://info.sgx.com/webcorannc.nsf/Annou...endocument

Key messages are captured below. Basically aligned with news report on apparel market.

"Generally, the weak economic sentiments as disclosed in the Group’s last announcement on 7 May
2012 had led to a deteriorating business environment. In 2Q 2012, the Group has seen a slowdown
in the textile industry. Both the demand and selling price for the high-grade textile products,
including both apparel and umbrella products, have been pressured by the weak business
conditions, which in turn impacted the Group’s revenue and profits. It is anticipated that the Group
will report a significantly lower net profit for 2Q 2012 than that of 2Q 2011"

[CY09]

Hi SG,

Indeed the market price is way below the book value or even Cash in hand. I think the risk that we are taking for purchasing the shares are 1) Is the company accounts real or fabricated (esp since this is a chinese company), 2) is the company able to withstand the industrial turmoil in the chinese textile biz ( i.e. will its current 54M of cash be enough for it to tide over the industry's turmoil).

These questions are your personal judgement. If you think the current price gives you sufficient margin of safety against the 2 key risks. Do go ahead or otherwise sideline and wait for more margin of safety