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Wow...Qingmei closed at S$0.067. That values the company at 679,824,874*0.067= S$45.5 million. The company based on the HY2012 (ending 31Dec2011) results had cash balances of RMB437,568,000 (S$87.51 million). I got a written assurance from August Consulting (the IR firm for Qingmei Group Holdings Limited and the principal contact for the Group’s shareholders in Singapore) which I am presenting below:
"Please rest assured that our financial statements and cash flows for FY2011 are in order as certified by our auditors, BDO Limited. Qingmei is committed to corporate governance and we continue to uphold a high level of corporate transparency toward our shareholders.
We had on 18 April 2012 guided that our sales and profit for 3QFY12 will be affected due to a slowdown in the China domestic market arising from intensified competition and industry consolidation. Our customers are also more prudent in placing orders due to the current market conditions. Nevertheless, we expect to remain profitable for FY2012.
Apart from the abovementioned profit guidance, we are not aware of any information not previously announced concerning the Group which might explain the change in the price of the Company’s shares. Changes in share price is subject to market forces and is something that is not within our control under the current market sentiment.
Thank you for your loyal support for the Group. We understand your concerns and hope that you will bear with us during this challenging period. We will be able to provide a more detailed update when we announce our 3QFY2012 results on or before 9 May 2012 via SGXNet.
Could not stop myself from adding to my holdings today. The price was simply ridiculous. I guess this will be a case of going double OR going bust...
"You are right not because the world agrees or disagrees with you, rather you are right because your facts & reasoning are right."
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IR firm is just repeating what it is told to say....it is not liable for anything.....
The company should come out with a statement.
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Please find below the response from August Consulting:
"The company may schedule a conference call with shareholders following its 3Q results announcement to provide further assurances. The call has yet to be confirmed but I will definitely keep you informed if it happens so that you can speak to the management directly about your concerns."
(02-05-2012, 06:16 PM)Behappyalways Wrote: IR firm is just repeating what it is told to say....it is not liable for anything.....
The company should come out with a statement.
"You are right not because the world agrees or disagrees with you, rather you are right because your facts & reasoning are right."
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Thank you for your efforts sgmystique. I suspect that Hunter Hall should have dumped all of its shares by today. Let's observe the volume in the coming days. Profit warnings have been coming fast and furious from quite a number of S Chips so I don't see any other reason why Qingmei should be dropping more than the rest other than Hunter Hall clearing stock. Furthermore, Qingmei guided that they are still profitable unlike others that are guiding for losses.
At these valuations, it is simply ridiculous. But that being said, the valuations for a lot of S Chips are simply absurd with many trading at steep discounts to cash levels. The skepticsm towards S Chips will persist unless S Chips start paying dividends regularly or start delisting. Really hope management does something to reassure shareholders.
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Well the one reason I have been invested in Qingmei is the fabulous dividends they have been paying for the last 2 years. Infact if they give out a similar amount this year they would have paid more than the current share price in dividends alone over the last 3 years...
(02-05-2012, 07:03 PM)sgpunter Wrote: Thank you for your efforts sgmystique. I suspect that Hunter Hall should have dumped all of its shares by today. Let's observe the volume in the coming days. Profit warnings have been coming fast and furious from quite a number of S Chips so I don't see any other reason why Qingmei should be dropping more than the rest other than Hunter Hall clearing stock. Furthermore, Qingmei guided that they are still profitable unlike others that are guiding for losses.
At these valuations, it is simply ridiculous. But that being said, the valuations for a lot of S Chips are simply absurd with many trading at steep discounts to cash levels. The skepticsm towards S Chips will persist unless S Chips start paying dividends regularly or start delisting. Really hope management does something to reassure shareholders.
"You are right not because the world agrees or disagrees with you, rather you are right because your facts & reasoning are right."
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Is this a high-quality business/company in terms of the quality of its key customers base, sustainability of its profit margins (especially GP and OP margins), and management competence and character?
The business of making the soles of sports/casual sneakers appears to require a high degree of design capability and technical expertise in mould making, and a good knowledge in plastic/rubber compounds. However, we must bear in mind producers of domestic-brand sneakers in PRC are suffering from an over-supply situation and falling selling prices and profit margins, and there will be casualties among them, which will affect their suppliers of key components like Qingmei. Beware of the risks of domestic trade debts turning bad and possible compromises on trade/payment terms with customers and suppliers.
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Instead of throwing $100 to enter casino, why not top up another $50 to buy 2 lot of Qingmei? This seemed to be a better gamble-If the cash is real you got a really good value stock, else you got yet another s-chip that goes wrong.
Absolutely not a call to buy or sell unless you really plan to go into the casino
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Congrats to the brave souls who had bought at 6+ cents. 30% profit in one day. No risk no gain like they say.
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punting may be fun and exciting... but try not to loose $$!! :O
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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