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19-12-2011, 05:56 PM
(19-12-2011, 05:28 PM)Nick Wrote: The bulk of my shares were sold in June towards the end of the bull run. Sold the remaining in August.
I didn't buy again as it was clear in their latest FY result that they are not gg to pay a dividend. And I felt that there was high chance of equity raising to finance their growth. I have been lucky for Minzhong. Had I held on, the losses would have been huge.
Overall a profitable investment and one huge eye opener on the risk of investing in S-Chip (despite having pedigree shareholders)...what is 'cheap' can get a lot cheaper.
If CMZ does start to pay out dividend, I believe it can be a strong catalyst to verify its strong business and help with its revaluation but I doubt it is any time soon.
Nonetheless, the more I read, the more interested I'm in CMZ. The extent of transparency which CMZ provides in its business is tremendous. I've read some news articles and it seemed that there were site visits being done for research analysts and lots of IR efforts being made too. CMZ CFO had also cried out for analysts to visit their sites to verify its existence. Unless it is a perfect play of reverse psychology, I will say the inference on CMZ business so far has been positive. Will be digging deeper into its numbers to check its verification. One thing I still can't understand is the earlier post on consolidating non-cash item (depreciation) into COGS - doesn't make sense at all!
But Nick, you're right.. what's cheap can indeed get a lot cheaper. Closed today at 0.705, I believe it can break the 0.70 support. Waiting for more decline while I do a more comprehensive research on the company.
