Sino Grandness

[leeeta]

Dont think it is UOBKH as a whole but some individuals

1. if SinoG is fake, then Mr Huang is a very skillful conman. Too skillful that he is even able to con old hand Mr Mahagitsiri who is in the business for donkey years..and not only that, he must have cast some strong spells to get them lock up shares for 10yrs. The lo quat juice spell must be very potent that even Mr Mahagitsiri made up his mind to invest after a sip.

With the placement (approx. $40M if offer price is 50cts), SinoG now would have an enlarged shares of 670M and they have to fork out $10M dividend every year as required. $10M a year for $40M one time - not a good business deal. So whats the catch - Could there be a JV in the making? Expansion to Thailand or SEA or even business network ..Nestle comes to mind..???!!! Is Huang looking for further growth/expansion through this partnership?

2. Ok, lets say they manage to fake it in China because whole China is fake. But to take this to another level - Hong Kong, I dont think they can succeed if they are fake. I dont see how they can get past Wellcome HK which is controlled by Dairy farm and Hinsang, a listed company in HK , their appointed distributor. Dont these guys do checks as well? By the way Wellcome have stores also in China, they would have gotten information on the products and the sales figures.

3. The ipo process... - I bet that the IPO Mgr has read the shortseller report and would have done triple checks. Dont you think he or she is stupid? He/She would have resigned by now if there are any fraudulent figures. More info on the IPO here.. http://www.nextinsight.net/index.php?opt...5&Itemid=1

There are so many s chips that are suspended. Did their ipo underwriter carried out their due diligence? On the other hand, you can't assume all s chips are dubious due to a few black sheep. That's why we should be very careful and do our due diligence when investing in stocks with a short listing history.

For me, Sino Grandness has very poor corporate governance do I avoid this stock no matter how cheap it is.

That was then..Now listing in HK is much more stringent.