03-06-2013, 07:10 AM
(02-06-2013, 09:45 PM)potatolover Wrote: Hi JZK
why do u think starch price is still so depressed, despite the drop in overall starch production volume industry-wide?
Tks.
(30-05-2013, 02:15 PM)jzk Wrote: Sad but true. We are heading towards inevitable bankrupcy. In my opinion, the only way to salvage any shareholder value is chopping the company to pieces. They have five production facilites, of which they currently only use three. They have some patents and facilities in animal feed product line. Should there be any possible ways to sell those assets, they would recover even some amount of cash. With current working capital they are in a very quick death spiral ending in either current fiscal year or 2015.
Selling assets with reasonable prices may prove to be tricky, since all potential buyers know, that the assets would be fire-sold very soon. After selling animal feeds and unnecessary production facilities well below book prices the company would still be in difficulties, and the business volume would be just a fraction of what it used to be.
The other possible exit is teaming up with another company. Especially in this case it seems really unplausible, that mr. Zhao would ever find an ally to offer decent prices/conditions for merger.
I am preparing myself for writing this one down. But that's just investing. The only way to avoid all mistakes is to do nothing.
If the asset of CE is of any value, the banks would have moved and taken possession of them. I am not vested but would like to see one of the major shareholders, Mr Ng, would have anything to say of this company.