I wrote about the red flags in this company nearly 3 years ago in this very thread, starting from post #41. I hope the forum members who continue to follow this stock are doing so as bystanders curious to see what eventually happens, and not as long-suffering shareholders hoping for a miracle.
There are several lessons to be learnt here. I hope forum members will take at least a couple of them to heart and use them to improve their future investments. The S-Chips as a group have proven to be excellent real-time case studies to teach investment analysis - as long as you were a bystander and not a shareholder.
Leo Tolstoy wrote:
"All happy families are alike; each unhappy family is unhappy in its own way."
Perhaps the corollary in investment is that all good companies are alike; each bad company is bad in its own way.
As usual, YMMV.
There are lapses/loopholes in the SGX's regulatory regarding Chinese companies listing in Singapore. As long as the lapses/loopholes are there, we will continue to see these incidents/events appearing again and again. I find it surprising that many people still want to 'try out' their luck by continuing to invest in Chinese companies listed in Singapore. Maybe they are born lucky......
Beside retail investors, there are some funds (2G capital) and brokerage houses (those whose name appear in the SH list but without the "nominees") having stake with them as well. I am surprised them are doing nothing. Simply write-off?
As usual d.o.g. has given very useful insights into how to spot a crooked company. But I think we should never discard a class of investments like S-chips even though the probability is higher else we will overlook the YZJ and the Yanlords, as well as derivatives which had been main cause of crash since the days of Barings and 1987. Those tips he mentioned is applicable to all equity analysis and hopefully buddies will realise there is more to just simple numbers/ ratios but looking at intent and overall picture as well.
The main killer for S-chips are the lack of enforcement leading to outsized unscrupulous fraud and the oft claim of RMB being controlled currency, which is changing.
(07-05-2014, 10:31 AM)GPD Wrote: [ -> ]Beside retail investors, there are some funds (2G capital) and brokerage houses (those whose name appear in the SH list but without the "nominees") having stake with them as well. I am surprised them are doing nothing. Simply write-off?
what else but to write-off? gosh.. pursue with court case for many years and throw good money after bad money?...
well...
tks for the foresight.
IMHO, there will be the next wave of S-chips biting the dust (e.g. China Essence, etc)
Would you have any view pls? tks.
(06-05-2014, 07:31 PM)d.o.g. Wrote: [ -> ]I wrote about the red flags in this company nearly 3 years ago in this very thread, starting from post #41. I hope the forum members who continue to follow this stock are doing so as bystanders curious to see what eventually happens, and not as long-suffering shareholders hoping for a miracle.
There are several lessons to be learnt here. I hope forum members will take at least a couple of them to heart and use them to improve their future investments. The S-Chips as a group have proven to be excellent real-time case studies to teach investment analysis - as long as you were a bystander and not a shareholder.
Leo Tolstoy wrote:
"All happy families are alike; each unhappy family is unhappy in its own way."
Perhaps the corollary in investment is that all good companies are alike; each bad company is bad in its own way.
As usual, YMMV.
In a board of directors’ meeting held on 22 January 2014, the independent directors of the
Company who held office on that date and who are also the Audit Committee members on that
date, had a difference in opinion with Management on the handling of the claim and had required
the appointment of another reputable audit firm and reputable law firm to conduct an independent
re-assessment of the customer claim. All 3 independent directors who held office on 22 January
2014 had subsequently resigned as directors of the Company because of differences in opinion
with Management in relation to the handling of the customer claim. The customer claim was
settled subsequent to the end of the reporting period without an independent re-assessment of the
customer claim as required by the independent directors and Audit Committee members.
We were not able to obtain sufficient appropriate evidence as required by SSA 500 Audit
Evidence to satisfy ourselves as to the reliability of the evidence provided by the Legal Advisor
and the Accountant which was relied upon by Management for this customer claim.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF FORELAND FABRICTECH HOLDINGS LIMITED
http://infopub.sgx.com/FileOpen/Auditors...eID=308697
wow, the management still dares to come to Singapore for AGM?
Venue(s) Venue details
Meeting Venue Centennial Tower, Level 21, Banyan Room, 3 Temasek Avenue Singapore 039190
Well i have been a long standing shareholder but have stopped hoping for any miracles
Foreland has been an excellent lesson for me though a very expensive one...
