rmb52 million is a drop in the ocean - can't do much with it if you have big plans to take on big projects. Sinotel's working capital needs are high - so it needs the placements and rights issue.
We can only hope the cashflow and the trade receivables get better so they can fund expansion projects. Anyway, not exactly the market's favourite stock .
They seem to be more active these few weeks. Stock is a laggard with PE only 4X, but the receivables are high and the working capital needs are going to continue to be high as they win more projects.
How are Sinotel's ADR doing? Any news on it. I am aware there was much banter when Sinotel first proposed the ADRs.
There may be reasons why Sinotel is trading at 4 times PE, that is, the market has priced the company as such. The company should focus on increasing ROE than PE, because the former means that it is working for the interest of the shareholders.
The stock is definitely higher than March 2009, but it is a far cry from the peak. I see little if no up side. Its good ol days are over for the stock.