China Minzhong

weijian from Valuebuddies.com forum shared the following notes:

>>
Went to the AGM 2011 on 28th Oct. Only about retail 20shareholders turned up but there was a long discussion that dragged at least 1.5hours before the CEO implored everyone to move on..
Below are some of my positives/negatives takeaway that i would like to share

Negatives:
- Mgt hinted no dividends upon request for dividends.
- Organic veg (high margins) only accounts for ~5% revenue. There is not much emphasis on growing it, as capital is been deployed to other areas. It seems to deviate from the impression that they are giving to the rest of the world (as per 1 shareholder's comment)
- Claimed to be in favored industry (of gov). Gets grants, lower interest rates and subsidised receivable insurance premium, but still unable to get longer term loans?!

Positives:
- 3 non executive board directors (2 PE, 1 GIC) are substantial shareholders. I believe this might create better dynamics.
- As it is in a favorable industry (of gov), it can get subsidies for banks loans and trade receivables insurance premiums.
- CEO emphasized that CMZ's model is different from Chaoda (well, at least not the 33% of cultivation biz) - Chaoda is mainly involved in upstream, while CMZ is more of fully integrated - cultivation and manufacturing

Was $1.41 when NRA had this report ('compelling buy") in June 2011. Now $1.09 after recovering from a low of 88 cents. Wahliao, should have picked it up at below 90 cents a week or 2 ago
[url=http://www.nextinsight.net
/story-archive-mainmenu-60/912-2011/4008-china-minzhong-what-analysts-now-say]CHINA MINZHONG, CHEUNG WOH, CHINA TAISAN: What analysts now say.....[/url]
 

Big name S-chip, hugely sold down to 88 cents. Opportunity for a new substantial shareholder to buy in. It was announced that Prudential Asset Management has crossed 5%. Today, the stock will surely jump, aided by US and Europe markets being all up sharply.

OMG, this stock closed at 78 cents, its 52-week low and its all-time low.
Why? I thought Prudential can support stock. They also hesitating now>?

Stock prices these days don't reflect the fundamentals of the businesses, just reflect sentiment of the market which in turn is yo-yoing with the developments of the euro crisis.  I know a number of value investors who have bought in Minzhong, or are looking at it. Minzhong is at 73 cents, an all-time low.

Given the top quality of this stock, I can only guess that the selling has been done by funds which are facing redemption or which needed to sell for whatever reason.