(10-08-2012, 09:48 PM)Stockerman Wrote: [ -> ]some billionaire used to say that one should not simply buy more of a counter because the price appears to be cheap; neither should one sell a stock if the price appears to be high...
If the P/E can go down to one, it can go down to zero too.
e.g. Qingmei - If we think 20 cents was cheap (fell from 31 cents), how abt 7.6 cents now? If no fraud, each share is backed by 12 cents in cash...
China Bearing - if we think 5 cents was cheap (fell from more than 30 cents), how abt 1.9 cents now?
I always reminded myself with Peter Lynch's "The Twelve Silliest Things People Say About Stock Price"
I had quoted it before, but would like to repeat here. The top in the list is "You can always tell when a stock's hit bottom"
I will never buy just because a stock hit the bottom.
(08-08-2012, 09:25 PM)Stockerman Wrote: [ -> ]Tks.
When what would shareholders get back?
In case of delisting? What are they to get back, as they would not lose a thing?
you are right.. with such a low share price, it is akin to owning nothing...
so even if the counter is delisted, etc, "NOTHING" will be lost...
(11-08-2012, 06:59 PM)jzk Wrote: [ -> ] (08-08-2012, 09:25 PM)Stockerman Wrote: [ -> ]Tks.
When what would shareholders get back?
In case of delisting? What are they to get back, as they would not lose a thing?
Company only had 137mil rmb on hand compared to 800mil one year ago . How to buy any potatoes ?
If I am company, it is what I will do...
Let the current company go under to the point of bankruptcy and delisting
Then form another new company to buy over the delisted company at a super cheap price....
Look at Ferro China ... it seems to be still in operations...
This is becoming more and more common. This happened a year ago in Scotland with Rangers Football Club, a 100+ old institution. The new owners ripped it to pieces and transferred the assets to a new shell and maintained somewhat of an operational status. I am not saying the two cases are identical but the strategy of allowing a company to technically under thereby stripping investors of any capital invested to only make them an offer they cant refuse. I see a parallel with Chapter 11??
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Once a company is delisted out of SGX , SGX does not have the jurisdiction ... Look at ferrochina ... What investors got back is just some toilet papers
SGX doesn't but surely the courts in the country of registration do??
China is the exception. I guess the scales are tipped in favor of the Chinese owners from the beginning, just look at all the scandals over the past few years. Most if the companies are still operational, just the listed shells got issues. Bad PR goes away and in this case maybe do class actions!
Though this company may not be shady, it may not pull thru this year given that it has screwed up its last harvesting season, resulting in 5 consecutive quarters of losses..
What is preventing the farmers from "collusion" again this year to jack up the price of potatoes, only to dump them in a mad stampede later on?
(13-08-2012, 11:29 PM)Spyro Wrote: [ -> ]SGX doesn't but surely the courts in the country of registration do??
China is the exception. I guess the scales are tipped in favor of the Chinese owners from the beginning, just look at all the scandals over the past few years. Most if the companies are still operational, just the listed shells got issues. Bad PR goes away and in this case maybe do class actions!
An original and cunning fraud. First lend 200M personally to company and then default on your own debt
