Qingmei

Hi Cheongwee,  
I'm surpised you focused on something which was hardly the crux of my point but since you brought it up I will say that although Qingmei may not be the most liquid stock around, it is definitely also far from being extremely illiquid with a float of well over 300 million shares excluding the shares owned by Chairman Su. 
In fact if you look back in January this year, the average volume per day was well into the multi-millions. On the 26th of January this year, the volume for that day was more than 63 million! Yes Hunter Hall was buying shares but there were certainly enough sellers for them to be able to buy from the open market, an indication of the liquidity at that time. 
It is also not true that Qingmei will not fall when there is bad news because it is protected by a lack of liquidity. When Qingmei reported what the market perceived to be disappointing results in February, the stock fell from 36 cents on February 9th to 31 cents on February 10th on a very high volume of 16.8 million shares on that day. This was almost a 20% fall in 1 day on high volume. 
This is evidence that Qingmei is not extremely illiquid and can indeed fall on high volume if the market feels that a fall is warranted. Truly illiquid stocks don't show such sudden surges to high volume,  if you want to talk about illiquid stocks then take a look at the likes of Fujian Zhenyun, China Essence, Koon Holdings, MTQ Corp, Changjiang Fertilizer and many more. 
Qingmei's fall from grace since January is not unique as almost every other s-chip has fallen significantly since January highs, and many by much more than the 50% that Qingmei has fallen by. More extreme cases include:
Ziwo: 52 wk High 44 cents. Current Price: 12 cents
Sinotel: 52 wk High 38 cents. Current Price: 12 cents
However, what I'm trying to say interested me about Qingmei was not in performance since January but its performance since June.
While most s-chips have fallen significantly from even their June lows, Qingmei was steadily fluctuating between 19 to 20 cents for the most part until the married deal 2 days ago, meaning that Qingmei had not gone below its June lows. That was interesting because it suggested to me that perhaps a high dividend yield can hold up a stock in times of market turmoil. 
Also, that daily volume for Qingmei over the last couple of months has generally been low also does not mean that it therefore could not have fallen. Volume of s-chips as a whole have generally been low over the last few months compared in January-February but that does not mean that these stocks have not fallen on low volume, indeed many s-chips have fallen substantially since June/July on very low daily volume.
Therefore in summary:
1. Qingmei has enough shares floating in the market to generate high liquidity/volume and to even fall on high volume if the market feels its warranted, as was evidenced in January and February. 
2. Having low daily average volume does not mean a stock cannot fall. Most s-chips have fallen over the last few months on relatively much lower volume than in January and February. In fact when the market turns bearish, volume for penny stocks tends to be low. Look back in January to March 2009 for instance.  
3. Qingmei was interesting to me because it had outperformed many s-chips since June (at least until before the married deal 2 days ago), suggesting the importance of high dividend yield. Qingmei could have fallen on high volume (as evidenced by its fall in February) or low volume (as evidence by the low volume falls of many s-chips over the last few months) but up until the married deal, it had held up well since the downturn in June. 
This is why Qingmei interested me from an academic point of view. I'm not vested in Qingmei but it has nevertheless been interesting to watch from an academic standpoint. 
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[cheongwee 07-10-2011]:

I hope you dont mind, the boss hold 65%(now 60) of the share and the daily transaction vol is too low to access anything, not to say anything about the counter. So how you get impress with the stable px is beyond my understanding??? And thgis stock is not liquid.
 
[hr]
[ethan999 07-10-2011]:

Not vested in Qingmei as I don't like their IR standard but I've been keeping track of it as I was impressed at how the share price held up reasonably well during the recent market turmoil, not going below its June low of 18.5 cents or so unlike most other stocks which are well into their 52-week lows. This was of course the case only until the recent marriage deal by Chairman Su.
In my opinion it is most likely that Chairman Su is opting for script dividends because he wants Qingmei to retain a greater portion of its net profits in the form of cash. By opting for script dividends, the company retains about 60% of the cash it would otherwise have paid for in dividends. In a sense this is good for the company despite the dilution in shares, but it would depend on what exactly it intends to do with this extra retention of cash.
 

Wonder which brokerage brokered the placement? More importantly, who are the investors who took up the shares? High networth? Boutique funds? In-house traders/remisiers?

Are they long-term or short-term in the stock?

The discount to market price was expected since no one would pickup Qingmei in big quantities unless offered a discount. Plus offered an assurance that the books are clean. Plus an assurance that the earnings for 3Q would not be a negative surprise.

So, short-term wise at least, it looks like the stock would be OK.
Maybe we are too imaginati ve, or too anxious.
 

Hi ethan999
I am sorry, I know i should be more careful so as not to cause stress to you(ethan9990 and people here.
You are very knowledgeable. Please do continue with your good work over at this forum.
I would like to sincerely apologise to you, And i further make know to you guy here that i will be more careful with my post. I hope ethan do not mind. Hope he is not discourage by my post.\ and continue to contribute generoulsy here,
ethan, thanks
 
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[ethan999 08-10-2011]:

Hi Cheongwee,  
I'm surpised you focused on something which was hardly the crux of my point but since you brought it up I will say that although Qingmei may not be the most liquid stock around, it is definitely also far from being extremely illiquid with a float of well over 300 million shares excluding the shares owned by Chairman Su. 
In fact if you look back in January this year, the average volume per day was well into the multi-millions. On the 26th of January this year, the volume for that day was more than 63 million! Yes Hunter Hall was buying shares but there were certainly enough sellers for them to be able to buy from the open market, an indication of the liquidity at that time. 
It is also not true that Qingmei will not fall when there is bad news because it is protected by a lack of liquidity. When Qingmei reported what the market perceived to be disappointing results in February, the stock fell from 36 cents on February 9th to 31 cents on February 10th on a very high volume of 16.8 million shares on that day. This was almost a 20% fall in 1 day on high volume. 
This is evidence that Qingmei is not extremely illiquid and can indeed fall on high volume if the market feels that a fall is warranted. Truly illiquid stocks don't show such sudden surges to high volume,  if you want to talk about illiquid stocks then take a look at the likes of Fujian Zhenyun, China Essence, Koon Holdings, MTQ Corp, Changjiang Fertilizer and many more. 
Qingmei's fall from grace since January is not unique as almost every other s-chip has fallen significantly since January highs, and many by much more than the 50% that Qingmei has fallen by. More extreme cases include:
Ziwo: 52 wk High 44 cents. Current Price: 12 cents
Sinotel: 52 wk High 38 cents. Current Price: 12 cents
However, what I'm trying to say interested me about Qingmei was not in performance since January but its performance since June.
While most s-chips have fallen significantly from even their June lows, Qingmei was steadily fluctuating between 19 to 20 cents for the most part until the married deal 2 days ago, meaning that Qingmei had not gone below its June lows. That was interesting because it suggested to me that perhaps a high dividend yield can hold up a stock in times of market turmoil. 
Also, that daily volume for Qingmei over the last couple of months has generally been low also does not mean that it therefore could not have fallen. Volume of s-chips as a whole have generally been low over the last few months compared in January-February but that does not mean that these stocks have not fallen on low volume, indeed many s-chips have fallen substantially since June/July on very low daily volume.
Therefore in summary:
1. Qingmei has enough shares floating in the market to generate high liquidity/volume and to even fall on high volume if the market feels its warranted, as was evidenced in January and February. 
2. Having low daily average volume does not mean a stock cannot fall. Most s-chips have fallen over the last few months on relatively much lower volume than in January and February. In fact when the market turns bearish, volume for penny stocks tends to be low. Look back in January to March 2009 for instance.  
3. Qingmei was interesting to me because it had outperformed many s-chips since June (at least until before the married deal 2 days ago), suggesting the importance of high dividend yield. Qingmei could have fallen on high volume (as evidenced by its fall in February) or low volume (as evidence by the low volume falls of many s-chips over the last few months) but up until the married deal, it had held up well since the downturn in June. 
This is why Qingmei interested me from an academic point of view. I'm not vested in Qingmei but it has nevertheless been interesting to watch from an academic standpoint. 
[hr]
[cheongwee 07-10-2011]:

I hope you dont mind, the boss hold 65%(now 60) of the share and the daily transaction vol is too low to access anything, not to say anything about the counter. So how you get impress with the stable px is beyond my understanding??? And thgis stock is not liquid.
 
[hr]
[ethan999 07-10-2011]:

Not vested in Qingmei as I don't like their IR standard but I've been keeping track of it as I was impressed at how the share price held up reasonably well during the recent market turmoil, not going below its June low of 18.5 cents or so unlike most other stocks which are well into their 52-week lows. This was of course the case only until the recent marriage deal by Chairman Su.
In my opinion it is most likely that Chairman Su is opting for script dividends because he wants Qingmei to retain a greater portion of its net profits in the form of cash. By opting for script dividends, the company retains about 60% of the cash it would otherwise have paid for in dividends. In a sense this is good for the company despite the dilution in shares, but it would depend on what exactly it intends to do with this extra retention of cash.
 

Hi Cheongwee,
Please do not apologize as you did not offend or cause any stress to anyone at all. You are entitled to your opinions just as I am to mine. 
Please feel free to disagree and debate whenever you see a need. 
Thank you as well for your valuable contributions here and your insights on reading the market. 
 
On a side note if I had a large share in Qingmei and say I purchased it for 18-19 cents in June. I would have sold them during the recent market turmoil (before the married deal) for between 18-19 cents, not making any losses despite the huge market downturn since June/July, and used the cash to purchase many of the stocks which had been sold down since June. Not vested though so this is a moot point. 
Whereas if you were holding a stock that had gone down significantly, you would not be able to do this to the same effect. This is the power of outperformance, it 'increases your bullets' in times of turmoil. 
If you're standing still while everyone else around you is going backwards, you are in effect going forward. 

Everyone must go :: Judge for yourself the prospects of the business :: Test the chairman's sincerity #@: Level 4, Enterprise Room, Raffles City Convention Centre, 80 Bras Basah Road, Singapore 189560 on Monday, 31 October 2011 at 10.00 a.m.
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[simplerocks 05-10-2011]:

Hi... anyone with information on Qingmei AGM date...

hi yeh
Can pls ask him abt the marrige deal, see what he said. I cannot go, not a shareholder, But interest to known and own this counter, Thanks.
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[yeh 12-10-2011]:

Everyone must go :: Judge for yourself the prospects of the business :: Test the chairman's sincerity #@: Level 4, Enterprise Room, Raffles City Convention Centre, 80 Bras Basah Road, Singapore 189560 on Monday, 31 October 2011 at 10.00 a.m.
[hr]
[simplerocks 05-10-2011]:

Hi... anyone with information on Qingmei AGM date...