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Sharing something funny I saw from my friend's Facebook...

If the report is true, and seems like it is, this is the first big loss I experienced in my investment journey.

I am heavily vested in this company (>30%), without knowing better.

(26-08-2013, 06:40 PM)Wildreamz Wrote: [ -> ]If the report is true, and seems like it is, this is the first big loss I experienced in my investment journey.

I am heavily vested in this company (>30%), without knowing better.

omg, so sorry to hear that bro
maybe treat it as a lesson learnt, your investment journey can still be very long ahead

btw how come u invest so much of your funds into this? (over 1/3)

(26-08-2013, 06:40 PM)Wildreamz Wrote: [ -> ]If the report is true, and seems like it is, this is the first big loss I experienced in my investment journey.

I am heavily vested in this company (>30%), without knowing better.

Take care, I know how it feels, that F** up feeling, I went thro the CAO fiasco with almost 70% of my savings. But it will pass..

Anyway there is still a chance that not all accusations are true. Management has yet to reply.

(26-08-2013, 07:01 PM)felixleong Wrote: [ -> ]

(26-08-2013, 06:40 PM)Wildreamz Wrote: [ -> ]If the report is true, and seems like it is, this is the first big loss I experienced in my investment journey.

I am heavily vested in this company (>30%), without knowing better.

omg, so sorry to hear that bro
maybe treat it as a lesson learnt, your investment journey can still be very long ahead

btw how come u invest so much of your funds into this? (over 1/3)

Purely on a value perspective, and the fact the Indofood and Templeton Investment has significant stake, gave me a false confidence.

There also also many analyst report that gave me a false assurance.

There are quite a number of issues that raised my concern before, such as the profit margin, cash flow, and the fact that GIC withdraw their investment...

Now I am seriously questioning if I should just divest all China companies..

While there are some nice PRCs around, vast majority of PRCs I met are dishonest, and feel that people who are not dishonest are dumb.

The problem is even more acute the higher you climb their corporate or social ladder.

When I make a decision to invest in a company, I feel that I am first and foremost investing in the integrity of the management team. While it unlikely that I would know the team personally, I therefore have to make assumptions, and those assumptions are usually based on the rules their societies play by.

In China, some of the rules are rampant corruption, pulling of strings, doing whatever it takes to succeed, including law-breaking, might makes right and lack of accountability.

Even as a Chinese, I look down on China, not for racism or monetary reasons, but more for how their society has evolved ever since the Cultural Revolution.

Even in its territorial disputes, China makes ridiculous claims on islands it has no historical claims on (China has sworn off its own maritime history ever since the Ming and Qing dynasties), and demands for territory well within other countries exclusive economic zones, yet it keeps quiet when having land border disputes with Russia.

And when China tourists arrive on disputed island, their first act is to destroy and harm the natural environment, just because they think they have money, they can do as they please.

Please don't get me started on unscrupulous PRCs who poison baby milk with toxic chemicals so that they can make a little more money.

When you invest in S-chips, you are basically putting your money with people who share such moral values.

So, with what is happening at China Min Zhong and other S-chip companies caught for fraud and cooking their books, I am simply not surprised.

While I can be politically correct and polite in public, in private, I make no such nice assumptions about the PRCs I have encountered and worked with. It's been a very long time since I invested in any China related company.

Wildreamz, my sympathies...
I have been hit many times before, but lower % for a single hit. Look on the bright side, this experience can only make you a much better investor... Monies can be earned back... Take care...

---

Good / bad timing? Or intentionally timed?

INVESTOR RELATIONS
Press Releases
INDOFOOD REPORTED ITS FINANCIAL RESULTS FOR THE FIRST SEMESTER ENDED 30 JUNE 2013
August 26, 2013 14:17

Including profit contribution from China Minzhong Food Corporation Limited, income for the period attributable to equity holders of the parent entity grew 1.2% to Rp1.70 trillion from Rp1.68 trillion; net margin declined to 6.3% from 6.9%. Core profit increased 5.8% to Rp1.77 trillion from Rp1.68 trillion on the same period last year.

Thanks for all the helpful suggestion.

I don't know what to say now. I am still in a state of shock. All I can think about now, is how to regroup, and not fall into the trap of taking on more and more risk, in order to recoup my capital.

Should I just sell all my shares now, while I think, and maybe relearn exactly HOW to invest?

(26-08-2013, 07:09 PM)Wildreamz Wrote: [ -> ]Purely on a value perspective, and the fact the Indofood and Templeton Investment has significant stake, gave me a false confidence.

There also also many analyst report that gave me a false assurance.

There are quite a number of issues that raised my concern before, such as the profit margin, cash flow, and the fact that GIC withdraw their investment...

Now I am seriously questioning if I should just divest all China companies..

I was bitten many many times by various Chinese companies since starting investing 6yrs ago. Every time thinking it will be different. But alas... it was all the same. Until I give up totally early last year. Even divest my holdings in YZJ (my last one) and swear never ever touch them again, no matter what is the valuation or what the analysts say.

All investors have battle scars, even Warren Buffett.
It may be a painful experience but if you are going to invest for the next 30-40 years, it is just a blip in your journey of investment.

However, whenever you spot another good bargain, always remember CMZ.