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Join us in tabling a resolution to the annual general meeting (end of April) for a dividend payout of SGD 0.10 (current px: SGD 0.085). The company currently has SGD 0.185 cash per share, earns less than 0.5% interest on this cash and has no significant capital expenditure plans.

Minority shareholders in Singapore (+ 1 inst shareholder) controls 70% of the company. We only need a simple majority (50%) to double our money!

We are organizing on facebook: " China Sports Intl - Shareholders Unite"

In the name of good corporate governance, please help spread the word. Tell friends and fellow shareholders. Help us reach out to SIAS, blogs and media.

This opportunity does not come around often. Our " Info" tab on facebook will provide further color.

M
this begs the question of whether the cash as represented on the balance sheet is genuine.

nevertheless, this is a move in the right direction for minority shareholder interest.
Auditors have become increasing careful when checking cash balances among S-chips, despite the recent news on e.g. China Hongxing.

Auditors now actually go directly to the bank and have it print out the company's bank statements, as opposed to in the past (e.g. Oriental Century where the company's CEO falsified the bank statements...).

There is of course a risk that the cash is not there, but the chances (imo) are minimal. S-chips have also started releasing official statements confirming that the cash is actually there. Currently, CSPORT is in the mercy of a very negative S-chip and sportswear industry sentiment. It is dangerous to generalize.

To be clear...I am not suggesting that you on Monday fill up your PA with CSPORT shares. The smallest limit of shares is really enough. This will give you entry to the AGM and is important because to table a resolution, one will need to have the support of a certain number of shareholders (according to Bermuda law). It does not matter how much they own.

During the vote itself, we will need 50% together. Don't worry about that.

What we need, however, is for this members of this community to help spread the word. Write threads, refer to our facebook site, rally the troops, contact SIAS and the media. Use your connections to get this snowball rolling.

For the sceptics: you are running minimal risk and with a hefty reward potential. You won't be doing the heavy lifting. The community will.

M


(10-04-2011, 08:27 PM)karlmarx Wrote: [ -> ]this begs the question of whether the cash as represented on the balance sheet is genuine.

nevertheless, this is a move in the right direction for minority shareholder interest.

unfortunately, i do not own any china sports shares.

if the resolution be successfully tabled and approved, it should set a precedent for other s-chips to pay out their hefty cash hoard. this would not only unlock the value of china sports but other s-chips with higher cash per share than price. personally, i would love to see this as i do have interest in one other such s-chip.
Thanks for your support.

I agree that the precedent this will set is important to the whole s-chip industry and will stand as a warning to not only all S-chip CEOs, but maybe more importantly, to the Singapore based independent Board of Directors who have their local reputation to protect. E.g. China Sports's BoD consists of 5 members, 3 of which are independent and Sing located...

Understand that you are not a shareholder, but would nevertheless appreciate your support. Our facebook page currently only has 3 "likes," one of which is mine...

Suggestions to how we get this ball rolling quickly? Thanks.

M


(10-04-2011, 08:54 PM)karlmarx Wrote: [ -> ]unfortunately, i do not own any china sports shares.

if the resolution be successfully tabled and approved, it should set a precedent for other s-chips to pay out their hefty cash hoard. this would not only unlock the value of china sports but other s-chips with higher cash per share than price. personally, i would love to see this as i do have interest in one other such s-chip.

If the cash is there, the receivables are collectible and there are no hidden liabilities, this is a damn good buy. But many things don't add up about this company.

1. A real Chinese shoe brand e.g. Li Ning, Anta, Peak doesn't need the preface China, because Chinese consumers know about them.

2. the FIFA sequence of events is really nasty
Sequence of events
22/01/2010. Wants to raise RMB100m for setting up distribution network for FIFA products. At this time, the total equity is RMB947m, there is RMB897m cash on the balance sheet. NAV is about $0.21 per share, wants to raise capital at $0.18 per share.
2010. World Cup happens. No news on the stores.
23/11/2010. Announces termination of distribution rights of FIFA Collection as FIFA takes back rights to Global Brands (Football) Pte Ltd

China Sports is also a rather odd choice for granting a FIFA marketing licence. FIFA has revenues of US$4.189b over 4 years, or US$1b a year. So if FIFA was awarding these rights in the same year as an upcoming World Cup, they would be looking for someone with 1000s of retail stores like Li Ning RMB9.5b / US$1.5b, and to spend a whole lot more money on stores than US$20m. Such retail store would also never trade at book value - Li Ning's PB is 3.7x.
In addition, if China Sports wanted to borrow money to expand against the licence for 100s of FIFA stores all over China, it's had to imagine that the banks would not lend money.

3. SGX' queries on: increasing admin expenses & higher receivables is weird when sales are falling.