Ziwo has had a bad 3 months from July to Sept, falling something like 50%. There is a good chance that it is ready to move up ---- now 13.3 cents, up 1.1 cents already.
Almost forgotten about this stock. Like everything else, this one hit rock bottom a few months ago. In this case, it was at 10 cents. The rally of 2012 has lifted Ziwo too. Now trading at 15 cents.
However, tread carefully. The auditor resigned in July, there is no news of a replacement auditor. Did I miss something here?
3Q results were not good, and I expect 4Q would be more of the same cos of high raw material costs, labor costs, new competition, etc .
Ziwo is another of those S-chips that came out of IPO charging like a bull. They raised more funds through placements (or tried to) and then flush with cash promptly went into a tailspin.
It's another bad one, this Ziwo, which has delivered rotten results, so I can only nod my head in agreement with Phillip Capital's report this week:
"We are maintaining our sell call. Share price had run up from its trough along with the small cap rally before the profit warning announcement which we think is unjustified. On a P/B basis, stock appears cheap at 0.5x with zero debt on its balance sheet and high cash balance of pproximately $0.12/share. However we do not see macroconditions improving for the industry. We have also not factor in the company giving out dividends. If it does, it’s good news. Punters may play on the “delisting/takeover story”. For the rest of us salaried worker coping with inflation worries, this is highly speculative and does not justify a risk returnreward for our hard earn money."
4Q2013 is interesting. Does it suggest a turnaround? Gross profit went up 111% to RMB12 m.
It reported RMB196 m in net cash (and no debt). On 299 m shares, the cash = 13 S'pore cents a share, which looks great compared to the share price of 8 cents.
