China Minzhong Food Corporation

[Bibi]

The experts will dissect the receipts and invoices..

If the experts asked for the receipts/invoices, the company might say "an unfortunate fire accident have destroyed the receipts".

[Jared Seah]

yeokiwi,

Nice to know there's another photography enthusiast here

1) The 1st picture is indeed suspect. Perspective is a bit weird. Multiple lighting sources? The last I know we have only 1 sun.

And the dead give away? The stupid tree on the top right hand corner

Who would plant a tree in the middle of the concourse? LOL!


2) Picture 4 is hilarious too.

We need some architects or structural engineers to help us here. What kind of overhead connecting bridge is that!?

The building on the left is in shadows. That means the opposite wall of the smaller building on the right should be facing the sun... But wait! It's in shadows too?

Hang on! The wall of the smaller building facing us is in bright sunlight! Hey! Make up your mind where you want the sun to be!

Look! We have another mystery shrub on the lower left corner of the picture again!? Who plants a shrub in the middle of the road?

Draw snake add legs... Must tell the photoshop person to go easy on the include near and far objects to create "depth" technique.


3) In my 4 years in China, I've never seen a factory with English only names. Majority are in Chinese only. At best it's names with BOTH Chinese and English names.


4) Warehouses are maximum security. Windows and doors all shuttered. No people. No trucks. Can't tell whether it's empty or filled to the brim with inventory. Evidently don't believe in the maxim that a picture is worth a thousand words. Look at my statements! Look at my statements!


Musings by ang kong kia

[momoeagle]

Powerful Rebuttal by CMZ.

But to be fair, the facts by Glaucus Research were pointing to portions of the reports that were indeed questionable, even in the slightest sense. It does help investors in learning, and show investors how some portions of the reports may be questioned before investing.

[weijian]

VB is a place with multiple talents like forensic photo specialists..

IMO, there are 2 cruxes of the argument:

(1) SAIC documents vs SAT documents. CMZ did not refute the SAIC documents, most probably meaning Glaucus' SAIC documents are real. CMZ however is implying that SAIC documents are 'lame duck' in nature and what really matters, are SAT documents.
(2) PRC GAAP vs FRS to explain why the chinese and singaporean financial reports are showing different PPE numbers.

Frankly, i do not have much intimate knowledge of china business and accounting practices to be able to independently verify those 2 pointers. But i do believe that with this report out, there will be enough qualified people of relevant knowledge to make that call soon..

I do agree with some forumers that it is simply pointless to seek legal recourse with Glaucus Research. A good case study would be Olam Research-Muddy Waters where Olam CEO finally realized that his extremely defensive attitude (which includes threatening to sue MW) was not helping and decided to work on other things that he can control. ie. getting Temasek support, issue new capital, deleverage and slow down its expansion etc.

If CMZ is not a fraud, it now needs to focus its efforts on recovering from this potshot from Glaucus Research. IMO, it can do so by showing that it has the cash and buying support from Mgt/substantial shareholders. Without this report, i suspect CMZ was NOT going to give a dividend, but now it has declared a 1ct/share dividend, which actually only amounts to slightly under 5% and 10% of FY13 net profit and FCF respectively. Intuitively, i find this relatively insufficient and they have a chance to deploy more cash on the book by triggering share buybacks. As for IndoFood, several forumers have pointed out that they are shortly shy of the 30% trigger point to make a G.O and i suspect their hands are tied and the most probable outcome is that they will remain status quo. Finally, Mgt can put the $ where their mouths by mopping up a large enough quantum of 'undervalued CMZ shares' on the market. The chairman has done it before in 2011 and he should continue to do so now since the last done price is much cheaper than what he previously bought.

Since i do not have the expertise to authenticate all the documents, maybe the only way for a passive retail investor like me would be simply to judge based on the way CMZ responds in the next 1 month?

(vested)

[yeokiwi]

yeokiwi,

Nice to know there's another photography enthusiast here

1) The 1st picture is indeed suspect. Perspective is a bit weird. Multiple lighting sources? The last I know we have only 1 sun.

And the dead give away? The stupid tree on the top right hand corner

Who would plant a tree in the middle of the concourse? LOL!


2) Picture 4 is hilarious too.

We need some architects or structural engineers to help us here. What kind of overhead connecting bridge is that!?

The building on the left is in shadows. That means the opposite wall of the smaller building on the right should be facing the sun... But wait! It's in shadows too?

Hang on! The wall of the smaller building facing us is in bright sunlight! Hey! Make up your mind where you want the sun to be!

Look! We have another mystery shrub on the lower left corner of the picture again!? Who plants a shrub in the middle of the road?

Draw snake add legs... Must tell the photoshop person to go easy on the include near and far objects to create "depth" technique.

3) In my 4 years in China, I've never seen a factory with English only names. Majority are in Chinese only. At best it's names with BOTH Chinese and English names.

4) Warehouses are maximum security. Windows and doors all shuttered. No people. No trucks. Can't tell whether it's empty or filled to the brim with inventory. Evidently don't believe in the maxim that a picture is worth a thousand words. Look at my statements! Look at my statements!
Musings by ang kong kia

You are an expert Jared!
I am quite sure the gate of the park exists due to the second photo. But, the second photo is taken at an angle that you cannot see any building behind. Since the first photo is obviously photoshopped, so it simply raised a doubt whether is there any building behind the gate??
Similarly in picture 4, the sky has too much details. Hey man, you can't have it both. It's either detailed sky or bright buildings.
The only reason why there is so much details is that the sky is used to replace the original background. The original background probably contains some buildings or infrastructures that the photoshopper does not want us to see?

[BestPrice]

Hmm... Trading halt again ???

[HitandRun]

yeokiwi,
3) In my 4 years in China, I've never seen a factory with English only names. Majority are in Chinese only. At best it's names with BOTH Chinese and English names.

Yeokiwi and Jared

Photography stuff I am ignorant of. But as for signage, I think both of you are mistaken. At the front gate, a company might have its name in both Chinese and English. However, it is rather common to have signages like what CMZ has on the buildings, especially for WOFEs (wholly owned foreign enterprise) . The company that I used to work for have a signage for the buildings just like that in different parts of China.....

[minimax]

Indofood is considering making a GO or partial offer for CMZ. Best possible outcome under such situation.

[level13]

Breaking news --- POSSIBLE OFFER BY PT INDOFOOD SUKSES MAKMUR TBK ("PT INDOFOOD")

[Jared Seah]

It's a bit sad; but 2 years ago, Chinese netizens laughed their heads off and poked fun at the China Air force after their "borrow with pride" incident....

http://www.youtube.com/watch?v=yBjggJgiEP8

I guess it's a legacy from their communist past... Where political survival hinges on making party bosses happy.

The 2003 SARs incident even more sad where hospitals were "hiding" SARs patients from WHO officials sent to "help" China.

It's a transition process I guess.

Singapore in the 50s (especially under Lim Yee Hock govt) was not exactly pristine white. Same goes for Hong Kong.

Don't be too quick to throw stones. Spend time with grandparents. Listen to their stories. It's not always about money.