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11-08-2012, 10:58 AM
(This post was last modified: 12-08-2012, 05:48 PM by CityFarmer.)
(10-08-2012, 09:48 PM)Stockerman Wrote: some billionaire used to say that one should not simply buy more of a counter because the price appears to be cheap; neither should one sell a stock if the price appears to be high...
If the P/E can go down to one, it can go down to zero too.
e.g. Qingmei - If we think 20 cents was cheap (fell from 31 cents), how abt 7.6 cents now? If no fraud, each share is backed by 12 cents in cash...
China Bearing - if we think 5 cents was cheap (fell from more than 30 cents), how abt 1.9 cents now?
I always reminded myself with Peter Lynch's "The Twelve Silliest Things People Say About Stock Price"
I had quoted it before, but would like to repeat here. The top in the list is "You can always tell when a stock's hit bottom"
I will never buy just because a stock hit the bottom.
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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you are right.. with such a low share price, it is akin to owning nothing...
so even if the counter is delisted, etc, "NOTHING" will be lost...
(11-08-2012, 06:59 PM)jzk Wrote: (08-08-2012, 09:25 PM)Stockerman Wrote: Tks.
When what would shareholders get back?
In case of delisting? What are they to get back, as they would not lose a thing?
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
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Company only had 137mil rmb on hand compared to 800mil one year ago . How to buy any potatoes ?
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13-08-2012, 10:04 PM
(This post was last modified: 13-08-2012, 10:05 PM by Curiousparty.)
If I am company, it is what I will do...
Let the current company go under to the point of bankruptcy and delisting
Then form another new company to buy over the delisted company at a super cheap price....
Look at Ferro China ... it seems to be still in operations...
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
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13-08-2012, 10:46 PM
(This post was last modified: 13-08-2012, 10:47 PM by Spyro.)
This is becoming more and more common. This happened a year ago in Scotland with Rangers Football Club, a 100+ old institution. The new owners ripped it to pieces and transferred the assets to a new shell and maintained somewhat of an operational status. I am not saying the two cases are identical but the strategy of allowing a company to technically under thereby stripping investors of any capital invested to only make them an offer they cant refuse. I see a parallel with Chapter 11??
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Once a company is delisted out of SGX , SGX does not have the jurisdiction ... Look at ferrochina ... What investors got back is just some toilet papers
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13-08-2012, 11:29 PM
(This post was last modified: 13-08-2012, 11:32 PM by Spyro.)
SGX doesn't but surely the courts in the country of registration do??
China is the exception. I guess the scales are tipped in favor of the Chinese owners from the beginning, just look at all the scandals over the past few years. Most if the companies are still operational, just the listed shells got issues. Bad PR goes away and in this case maybe do class actions!
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14-08-2012, 01:54 PM
(This post was last modified: 14-08-2012, 02:03 PM by potatolover.)
Though this company may not be shady, it may not pull thru this year given that it has screwed up its last harvesting season, resulting in 5 consecutive quarters of losses..
What is preventing the farmers from "collusion" again this year to jack up the price of potatoes, only to dump them in a mad stampede later on?
(13-08-2012, 11:29 PM)Spyro Wrote: SGX doesn't but surely the courts in the country of registration do??
China is the exception. I guess the scales are tipped in favor of the Chinese owners from the beginning, just look at all the scandals over the past few years. Most if the companies are still operational, just the listed shells got issues. Bad PR goes away and in this case maybe do class actions!
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