Wildreamz, sorry about your losses. I too have been hit by S-Chip before, the biggest being China Paper. Please lookup the thread on China Paper if you are keen to know the details and how I react to it. Don't be beaten by this single failure, learn from it and you will emerge a better investor.
When you have survived so long like me, you will come to understand investing really is a lifetime "job" , "hobby" or the way you are going living for the rest of your life. Then you shall, you will learn to overcome all your "difficulties" or your "weaknesses" and build on your strength.
Sorry, i have to say i am still learning, learning, learning......
Shalom!
Learn from it, brother on how to better protect yourself next time.
I lost count of big investment mistakes i made myself like HPH, Dynamac and Hai Leck and others managing big positions when market turned against me. Painful Lessons indeed.
I think the problem is there will always people who say not all S-Chips are bad, which maybe true. But there is always opportunity in the market with lesser risk, why walk across a field full of landmines ? Is all about probability even after doing your homework.
(26-08-2013, 07:19 PM)investor101 Wrote: [ -> ]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.
Agree with you completely. No confidence in them at all. I feel sad for investors who bought into this counter and hope things turn out well for everyone.
I am starting to think I need to learn forensic accounting in order to invest properly next time.
Seriously, if their fraud is really so blatant (faking their largest customer etc), why no one before us, GIC or Indofood, realized before hand? What are the buy side analyst doing? Why didn't I realize before hand? Gosh.
Lesson learnt, when investing in a risky asset like S-Chips, do ALL detective work possible by yourself.
China Minzhong is my single largest holding, my second largest right now is only half its size. Was taking Warren Buffett advice that "too much of a good thing may be wonderful" forgetting to only "invest in what you (REALLY) know".
(26-08-2013, 09:14 PM)Wildreamz Wrote: [ -> ]I am starting to think I need to learn forensic accounting in order to invest properly next time.
Seriously, if their fraud is really so blatant (faking their largest customer etc), why no one before us, GIC or Indofood, realized before hand? What are the buy side analyst doing? Why didn't I realize before hand? Gosh.
Lesson learnt, when investing in a risky asset like S-Chips, do ALL detective work possible by yourself.
China Minzhong is my single largest holding, my second largest right now is only half its size. Was taking Warren Buffett advice that "too much of a good thing may be wonderful" forgetting to only "invest in what you (REALLY) know".
Im just curious, why didnt you bailed out when GIC bailed out as well?
I only bailed in after Indofood bailed in..
FOR IMMEDIATE RELEASE
Singapore, 26 August 2013 – It has been brought to the attention of China Minzhong Food
Corporation Limited ("the Company") that Glaucus Research Group (“Glaucus”) has released a
report (“Report”) regarding certain affairs of the Company. The Report has caused a substantial
decrease in the share price of the Company this morning and Glaucus has openly stated that
Glaucus and those acting in concert with it are short sellers who will profit from the decline of the
Company’s stock price.
The Company is in the process of reviewing the Report and will provide its response shortly. The
Company will take all necessary steps to defend its reputation and will not hesitate to take legal
action against those who put up and disseminate false or misleading statements without due
regard to their truth and for the purpose of inducing others to deal in securities.
In the meantime, the Company has halted the trading of its stock and reserves all rights against
the aforesaid parties.
http://infopub.sgx.com/FileOpen/CMZ_Pres...eID=253898
(Not Vested)