(10-05-2012, 01:23 PM)d.o.g. Wrote: [ -> ]sgmystique Wrote:The only thing of interest as far as Qingmei is concerned is whether the net cash on their books is real or not.
I posted earlier in this thread about their "Incredibles":
1. unbelievable worker productivity
2. amazing profitability even at low utilisation
3. Su Qingyuan's irrational selling
So far, nobody on this forum has been able to present a sensible explanation for all 3 issues, that does not require Qingmei to be a fraud, Su Qingyuan to be an idiot, or both.
u can raise these questions at the conference next wednesday. while we are all picking on qingmei here, it has quietly taken a 21 percent hike to end the day at 8.9 cents.
Ferrochina spiked up just the day before a trading halt was issued....
(10-05-2012, 11:49 AM)shanrui_91 Wrote: [ -> ] (10-05-2012, 10:29 AM)peterlynch Wrote: [ -> ]Of course all stocks carry risks, especially S chips. That's why s chips PE is so low, Qingmei's PE is only slightly more than 1.
The reason why many continues trading at such low PE is that none of them attempt to prove themselves to be real. At a PE of 1, a share buyback is most beneficial since you will have earned back the amount after 1 year. and so long as the company remains profitable it is like a cash cow that has paid for its own cost. What's more, many of these companies are trading below net cash, does it not make sense to use $1 to buy $2? Instead, some of them even has more share placements. San Teh has been doing share buyback because of the huge cash pile and that it knows it cannot spend them all.
At a super low PE, it is also very easy to give very high dividend yield. Is it really hard for all these high ROE S-chip to even give a 10% or 20% payout ratio which will amount to a 10-20% dividend yield assuming PE of 1? Qingmei has given out high dividend before, but then again that is still not a proof that the cash on hand is real since it forms a small part of the total earning.
The excuses that many of these management like to give is that they only care about business and that if business is doing well, the stock price will follow. Some of these companies have lot of cash in hand, but they have neither given it out as dividends, nor reinvesting it in business or doing acquisition. The cash pile just grows and you wonder why are they keeping the cash and not making good use of it. Even if there's no acquisition out there that's attractive, buying your own share definitely is.
Qingmei has consistently appeared in my SGX screening tool, but considering that it is an S-chip, I would not dare to place my money with it even though I am an investor with 5 to 10 years of timeframe. The same screening criteria that I used threw out Adampak and I quickly get 10 lots at 0.27 last year.
Well, P/E of 1 to 2 for S-chip may already be too expensive if the accounts are all cooked and fried to begin with.
We need to look for tell-tales sign...Diligently do cross-referencing checks on the parties (upstream/downstream) that company has dealings with. If the counterparties are large international MNCs, then we feel a bit more secured. But then again, we can be wrong too. it is just that the perceived risk is lower if we know that company is dealing with renowned international companies and not local brands...
After looking at the recent SLA's high profile corruption cases, u will know how easy it is to create phantom companies and use these companies to transact with the listed companies, and these can go on for years without being detected….
Qingmei has consistently appeared in my SGX screening tool, but considering that it is an S-chip, I would not dare to place my money with it even though I am an investor with 5 to 10 years of timeframe. The same screening criteria that I used threw out Adampak and I quickly get 10 lots at 0.27 last year.
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Some-one, what sceening tool do u use? i am interested
There's a write-up on Qingmei in this week's The Edge Singapore. Highlights quite a number of risks. Go grab a copy if you are interested in this company.
(Not Vested)
(12-05-2012, 05:35 PM)peterlynch Wrote: [ -> ]Qingmei has consistently appeared in my SGX screening tool, but considering that it is an S-chip, I would not dare to place my money with it even though I am an investor with 5 to 10 years of timeframe. The same screening criteria that I used threw out Adampak and I quickly get 10 lots at 0.27 last year.
Quote:Some-one, what sceening tool do u use? i am interested
I'm using the screening tool from Vickers. Criteria as follow.
P/E < 10
ROE > 20%
Debt-Equity Ratio < 50%
Dividend Yield > 5%
Current Ratio > 2
Now, it only throws out Qingmei and Foreland Fabric and both are S-chip so I decided not to buy any.
(12-05-2012, 05:56 PM)Musicwhiz Wrote: [ -> ]There's a write-up on Qingmei in this week's The Edge Singapore. Highlights quite a number of risks. Go grab a copy if you are interested in this company.
(Not Vested)
All negative? Nothing postive at all??
Hi Some-one
i am with vickers too but i can't find any screening tool. please advise
Better to actually read the article for yourself. I won't comment too much here.
Regards.