14-09-2013, 12:56 AM
(13-09-2013, 07:27 PM)Stockerman Wrote: [ -> ]This is a piece of walking zombie company .... Very surprised that the company has enough cash to pay farmers for their potatoes .....
Is there news mentioning that?
(13-09-2013, 07:27 PM)Stockerman Wrote: [ -> ]This is a piece of walking zombie company .... Very surprised that the company has enough cash to pay farmers for their potatoes .....
(29-12-2012, 03:14 PM)specuvestor Wrote: [ -> ]^^As discussed earlier, they are killed by 2 things: their capex expansion which will hurt their ACCOUNTING PnL for years to come. But that is sunk cost and shareholders since then had paid the price.
2ndly is their high OPEX to support their enlarged capacity. That is the real killer in cashflow as operating leverage bites the other way. Company can give up on the new plant and lay it waste, or continue to be burdened by the OPEX. Whether they can do so politically is another question.
Assuming they are still the largest starch manufacturer, local banks will likely to support their working capital needs up to a point. But paying off foreign creditors or adding value to shareholders are unlikely to be a priority.
(02-11-2012, 05:31 PM)specuvestor Wrote: [ -> ]CESS is likely to lose money on a PnL basis for years to come due to depreciation cost. That should not be a focus for investors now. The focus should be on whether their Operating Cashflow post AR write-offs, jump in labour costs etc will be positive on an ANNUAL basis because their cashflow is extremely lumpy.
FY2012 end March it was -RMB678m negative operating cashflow. Their peak season is now, 3Q end Dec, if they can't get positive operating cashflow this quarter, you can forget the other quarters.
(27-11-2013, 12:34 PM)specuvestor Wrote: [ -> ]We had this discussion already a year ago. It is not unforseeable. Their operating cashflow is not going to be able to maintain their working capital needs. It is a vicious cycle.
Only thing to look out for is if PRC banks will support them. Otherwise the assets may not even be worth much.
(29-12-2012, 03:14 PM)specuvestor Wrote: [ -> ]^^As discussed earlier, they are killed by 2 things: their capex expansion which will hurt their ACCOUNTING PnL for years to come. But that is sunk cost and shareholders since then had paid the price.
2ndly is their high OPEX to support their enlarged capacity. That is the real killer in cashflow as operating leverage bites the other way. Company can give up on the new plant and lay it waste, or continue to be burdened by the OPEX. Whether they can do so politically is another question.
Assuming they are still the largest starch manufacturer, local banks will likely to support their working capital needs up to a point. But paying off foreign creditors or adding value to shareholders are unlikely to be a priority.
(02-11-2012, 05:31 PM)specuvestor Wrote: [ -> ]CESS is likely to lose money on a PnL basis for years to come due to depreciation cost. That should not be a focus for investors now. The focus should be on whether their Operating Cashflow post AR write-offs, jump in labour costs etc will be positive on an ANNUAL basis because their cashflow is extremely lumpy.
FY2012 end March it was -RMB678m negative operating cashflow. Their peak season is now, 3Q end Dec, if they can't get positive operating cashflow this quarter, you can forget the other quarters.
http://www.valuebuddies.com/thread-830-p...l#pid38904
(11-08-2014, 01:09 AM)specuvestor Wrote: [ -> ]If it's any solace at least their numbers are more real than some other s-chips