(02-03-2012, 09:59 PM)Bibi Wrote: [ -> ]200 lots of $0.10 per share is a mere $20,000. I think one sh not pay much attention to such small purchase.
No doubt 200 lots for $20k is a small purchase, but we should bear in mind the fact that Tsoi already owned 282.55m Foreland shares, or a 53.44% stake, before the latest purchase, which shouldn't be his last - I hope.
I just ran the numbers again and frankly, I am shocked that based on the last done (2Mar12) share price of $0.10, and Foreland's FY11 NP of RMB140.648m and latest 528.735m outstanding issued shares - giving a EPS of RMB0.266, or approx. $0.053 - Mr Market is now attaching a value pegged at a very low historical PER of only 1.9x!! And this is before accounting for Foreland's large RMB228.055m net cash reserve - equivalent to RMB0.431/share, or approx. $0.086/share.
Unless Foreland's reported profits and assets (including the net cash reserve) are not real, or the business is heading towards a downward spiral, it appears that Mr Market could well be way off the mark in this case!
I'm beginning to look at Foreland with interests.
At $0.10, it seems very overvalued.
(04-03-2012, 05:21 PM)vicom76 Wrote: [ -> ]I'm beginning to look at Foreland with interests.
At $0.10, it seems very overvalued.
Overvalued or undervalued?
Do you trust the money in the bank?
I meant undervalued.
I am not vested yet.
Today's (5Mar12) announcement in response to a SGX's small query on the recent FY11 full-year result announcement makes interesting reading.....
http://info.sgx.com/webcoranncatth.nsf/V...800231C7B/$file/Foreland_Reply_to_Queries_FY2011_Announcementv4_Final.pdf?openelement
Now I know there are such things or local government levies called
Educational Surcharge and
Urban Maintenance and Construction Tax Surcharge in PRC. Thank goodness Foreland has a profitable business and strong operating cash generation capacity which can easily meet such additional tax obligations!
A related news on garment industry in China
A ghastly sight behind China's glamorous garment industry
Xintang and Gurao are two towns known for churning out millions of garments every year.
The former's output exceeds 260 pieces annually, and exports over 60 per cent of China's denim clothing. The latter produces 200 million bras a year.
But they are known for something else as well: Pollution.
The river near Dadun Village of Xintang is not just polluted, it's downright toxic. Not only does it emit a vomit-inducing stench, the river's 'water' causes skin to itch or even canker on contact.
And it's not just the environment that suffers, the people complain of skin dyed blue permanently and itchy skin. But they have no choice; it's their livelihood on the line.
Lies are easier to discover but halftruths are hard......
Issue of shares when company is flushed with cash yet still managed to distribute some dividends(proceeds from the issue of new shares) ......
sounds like gold bar scheme with promised interest return. The party will continue till money dries up.
If one invest solely on numbers, then all one need is a bloomberg machine which can sort out all the ratios for you....well when certain things seems confusing, it is time to return to common sense and not numbers.......
http://valuebuddies.com/thread-1418.html
I think it is silly and scary to just base on the pollution problems in Xintang and Gurao, and we conclude that Foreland's factory/operations based in Dongshi, Fujian, is suffering from the same fate.
I think it is also inadequate, baseless, and dangerous to just base on a past share placement done when the company was in a net cash position, and we conclude that Foreland's cash may be non-existent, and the money raised from the share placement would be used to fund future dividend payments - more as a show of continued financial health. The fact is that, since IPO in Apr07, Foreland had paid out dividends for FY07 (paid out in May08), for FY08 (paid out in Jun09), FY10 (paid out in Jun11), and FY11 (2 dividends; a $0.0051/share Interim paid out in Oct11, and a Rmb0.15/share Final likely in May/Jun12). Like many others, Foreland's business suffered a sharp decline during the 2008/09 global financial crisis, and the company did not pay out a dividend for FY09.
In fact, as an investor, there are many ways to verify things and risks in a listed company. You can talk to the management or CFO by attending the AGMs or result briefings or making a company/plant visit; you can give a call to an ID; and you can talk to the internal/external investor relations manager or analysts, who have written a press release or report on the company and have visited the plant before and have been talking to the management/CFO on a regular basis.
IIRC, Foreland new factory not being able to commission also has something to do with environmental assessment.
time is the biggest enemy of any fraud. Given enough time, either it will explode or it is not a fraud. It will just take more and more time and money to continue the fraud.
maybe can compare how much money has been raised and how much has been spent already to get some kind of clue?