ChinaFish..it\'s time to wake up

shot up to 68cts already....

Hi Musicwhiz; Read your article on your portfolio performance. Congratulations. It takes a brave man to come out and sound his opinions. I like to ask you about China Fish. Do you really understand their business? Their receivables? and their capex investment? If you do, please kindly enlightened me and all of us, who are blurred. A few friends and myself spent a couple of months studying Pac Andes, Pac Andes Int\'l and China Fish... eventually, we gave up. The business model was just too complicated for us to understand. Thanks for your help in advance.

Morpheus, The entire business model would be too lengthy and complex to type out here. I suggest forgetting about the inter-relationships between PAH, PAIH and CFG for now and just focus on their core business. Their respective websites have enough IR information to satisfy most investors, but my suggestion is to read through the last 4-5 years\' worth of Annual Reports to get a better idea. Basically:- CFG is downstream fish catching PAH is supply chain Management and ditribution PAIH is fish processing and upstream selling Of the 3, CFG has the highest margins as it is the company actually catching the fish. So any policies affecting fish supplies and fish quotas will directly impact CFG first, before flowing down to the other 2 companies. Incidentally, all the companies are Hong-Kong based, not China-based, even though the name \"China Fishery\" may give that impression. Cheers.

Just of note: China Fishery goes ex-bonus on May 21, 2009. Some brokerages like DBSV have written pretty decent reports on China Fish\'s 1Q 2009 results, and they have provided explanations for the depressed margins and higher COGS. It\'s a good read - just remember to ignore their calls on valuation and target price and just focus on the facts at hand. The way I see it, things should improve in 2Q 2009 as ITQ kicks in during April 2009 onwards.