Hi, I've just looked into the 1H2011 statement of FJZY and realsied that the cash and cash equivalent is 369,318,000RMB or about s$73,863,000. Divide this amount by 115,000,000 shares and that equates S$0.64 of cash per share. Now the last traded price of FJZY was only S$0.16. Does that mean that, if the account statements are accurate, the cash per share is at least 4 times as much as the share price? Does it make sense? Am i mistaken? Please advise.
This stock is quite a gem, if the accounts are true and the cash is real. However, there is no liquidity at all at current levels so it's no point for anyone to bother too much. The only way for it to be worth further analysis is if someone bids up the price and then there are trades done. How about 20 cents to start with?
There's no special reasons to doubt the authenticity of their accounts cos the special audit has already confirmed that the cash is there. The discrepancies in 2010 was really due to the differences of conducting business between china and the rest of the developed world. No real reason to question the accuracy of the numbers. Yes, 20 cents is a good bid. Let's go for it.
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