China Minzhong Food Corporation

[lvpierre]

interesting drop by 5% in trading today with heavy volume, anybody know why such a market reaction?

quite weird given the recent strong institutional buy

sources said that 3 foreign funds are selling...not sure is it true..

[dzwm87]

Where did u get your sources?

[greengiraffe]

Can we trust templeton franklin's recent aggressive buying spree in China vegetables?

I am really afraid of treading muddy waters with vegetable grower...

[Nick]

I guess this is why the share price is declining despite pedigree substantial shareholders in the form of Templeton and GIC ?

[dzwm87]

FT hits past 11%. Based on CMZ's IPO Prospectus, they aren't any of the existing cornerstone investors. This probably means they had started accumulating it on open market purchases. Looking at all its announcements made, total cost consideration is at around S$45m - a significant amount invested.

I am keeping a close watch at this counter. Might prove to be an attractive opportunity. Looking forward to their 3Q results next Monday (probably morning).

[dzwm87]

CMZ's 3Q FY12 result:

1. Average P&L performance. declining 3Q yoy result but 9M yoy had an improvement - CMZ reasoned that they had been hit hard by the delayed winter season; so probably earnings are likely to shift down 6 months

2. Declining balance sheet strength! - I attribute this to be the main reason for its sell-down:
- Inventories doubled qoq, quadrupled since FY11;
- Receivables increased by more than 50%, quadrupled since FY11;
- Bank loans increased significantly as well - increased almost 50% qoq, increased more than 50% since FY11
Though CMZ tend to have seasonality effect (high amount) in its trade receivables for 2Q & 3Q but these figures are proving to be too high!

*not vested*

[BeDisciplined]

"Franklin Templeton Asia Holdings Private Limited, is a wholly-owned subsidiary of Franklin Templeton Capital Holdings Private Limited, which is a wholly-owned subsidiary of Templeton International, Inc., which is a wholly-owned subsidiary of Templeton Worldwide, Inc., which is a wholly-owned subsidiary of Franklin Resources, Inc."

I notice that Templeton WW has 11.11%, Franklin Templeton 5.08% and Franklin Resource 10.17%. And based on the above which is an extract from one of the key stakeholder announcement, are all three stakes/ownerships independent of one another?

Thanks

[freedom]

GAM also started to sell. Will Franklin Templeton continue to buy? really interesting development.

delayed winter season should be no surprise. Anybody who understand lunar calendar should expect it. It is a long winter/spring this year.

[dzwm87]

I notice that Templeton WW has 11.11%, Franklin Templeton 5.08% and Franklin Resource 10.17%. And based on the above which is an extract from one of the key stakeholder announcement, are all three stakes/ownerships independent of one another?

I am lost at that too but I reckon it should be the effect of their shareholding structure.

GAM also started to sell. Will Franklin Templeton continue to buy? really interesting development.

delayed winter season should be no surprise. Anybody who understand lunar calendar should expect it. It is a long winter/spring this year.

Yes. Indeed, it is very interesting. Keeping a close watch but sitting on the sidelines for now. Probably it might tank a little further. Btw, care to elaborate on the lunar calendar link to long winter/spring? Quite interested.

[freedom]

There are 2 Aprils in lunar calendar this year. April is still considered spring in China.