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25-08-2014, 11:35 PM
(This post was last modified: 25-08-2014, 11:41 PM by Curiousparty.)
Dear d.o.g
You are so right about this company.
Now, it is a half-zombie.
http://chinaessence.listedcompany.com/financials.html
The assets under PPP have all been "written off". The worst thing is IDs and management in the company are still receiving their salary while the company is almost dormant.
This is indeed one more strong reasons to avoid S-chips...
(21-12-2011, 11:00 AM)d.o.g. Wrote: potatolover Wrote:So the CB is just behaving like a bond, with fixed repayment schedules. The upside potential from share price appreciation is tantalising but simply out of reach.
In this case it is much worse than a normal bond because there is an asset/liability domicile mismatch. The assets are in China, the liability is in the Cayman Islands. That's probably one of the key reasons the bondholders agreed to restructure - because there was no realistic way they could get their money back, nor take over the company.
All they can hope for is either a Ponzi-refinance i.e. a new group of banks/bondholders is dumb enough to lend the company new money so they can get paid, or the stock market goes crazy and they manage to either sell off the CBs or convert the CBs and sell the shares.
This kind of domicile mismatch is extremely common among S-chips as the company is usually incorporated in the Cayman Islands, BVI, Bermuda etc. Of course, few investors think about this until there are signs of trouble, at which point it is often too late.
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Now that its PPE has been written off to zero. How long does it take for the company to go bankrupt?
Why doesn't DBS just pull the plug ?
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29-08-2014, 08:21 AM
(This post was last modified: 29-08-2014, 08:23 AM by specuvestor.)
What plug? U mean DBS has recourse? 
The plug is with the chinese banks
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08-11-2014, 12:33 PM
(This post was last modified: 08-11-2014, 12:39 PM by Curiousparty.)
The fact that china essence had produced at so low capacity for so many quarters goes to show that the much earlier assertion that it is a key market player in potato starch might not be correct at all . The fact now seems to be that the Market can do without china essence. Why didn't potato starch price surge when key player like China essence has been producing close to nothing for so many quarters ? Why are shareholders made to pay for management salary when there is no sales ?
CEO is cowardly hiding in China and dares not hold AGM in spore . Another S chip that managed to Convince many shareholders in spore ..... Will key shareholders even make noise when this s-chip bites the dust ?
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d.o.g. Wrote:One (cynical) point of view: it was essentially blackmail. You want the money, come and get it. Try fighting your way through the Chinese courts. No chance, right? Want to seize the assets? Welcome, you just inherited a starch factory. Don't want that either? Then take your haircut and shut up.
Yes , mr DOG . U are so rite after all
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dun think the ceo is cowardly hiding in china..
on the contrary, bet they are living normally & possibly like king in china...
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10-12-2014, 12:20 PM
(This post was last modified: 10-12-2014, 12:34 PM by Curiousparty.)
China Essence is going to hit a new all time low.... $0.003 now. What is the theoretical lowest price limit for trading price at SGX?
Wonder how are the key shareholders and key management (i.e. CEO/CFO) feeling? still hoping for a turn around? (phoenix rising from ash?)
Any feeling of "remorse" to the minority shareholders?
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(10-12-2014, 12:20 PM)Curiousparty Wrote: China Essence is going to hit a new all time low.... $0.003 now. What is the theoretical lowest price limit for trading price at SGX?
The current theoretical lowest price is 0.1 cents, IIRC. There are already stock traded with this price e.g. Digiland
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And like sunmoon which was also 0.001.
That was the possible lowest but, it consolidated and after that fell some more.
So 0.1cent is not really lowest in dilution.
The sgx of 0.1cent movement is akin to currencies with 00000 behind
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Did sunmoon have a negative equity like China Essence?
(10-12-2014, 07:42 PM)orangetea Wrote: And like sunmoon which was also 0.001.
That was the possible lowest but, it consolidated and after that fell some more.
So 0.1cent is not really lowest in dilution.
The sgx of 0.1cent movement is akin to currencies with 00000 behind
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