Gaoxian is picking up momentum apparently after CIMB said it is a buy from a TA point of view.
In Korea, the KDR is doing about 4,950 won which is about 28 SG cents, very much higher than the 25 in SG.
Maybe GAoxian can be a sweet surprise in the next few days and weeks, by heading north of 30 cents. After all, its PE currently is about 4.5X this year's earnings forecast by UOB ....earnings which are no small potatoes as they weigh in at S$105 million.
Gaoxian has announced 2Q results and progress of special audit.
In 2Q FY2011, the Group saw its average selling prices for most products decline due to a more competitive operating environment. It also experienced a higher staff turnover in its marketing and sales department and had its operating environment dampened by adverse publicity arising from its current audit issues.
my comment: S-chips should learn the lesson that any form of cheating in the accounts will lead to devastating results. There is a big price to pay.
Mr Jerome Tham Wan Loong, Interim Chief Executive Officer of China Gaoxian commented: “We know that our shareholders are anxious and want to know the current situation of the Company. As such, we want to reassure our shareholders that China Gaoxian is still in business, albeit operating in a more competitive environment.”
my comment: No way should the previous chairman Cao Xiang Bin be allowed to have any management role in this company ever again. The CFO, Raymond Wong, resigned after the special audit was announced but he should not escape lightly -- he has a lot to answer for what went wrong with the books.
There are scoundrels yet to be named by the Special Audit who are responsible for the downfall in the fortune of Gaoxian. Shame on these scoundrels! The Koreans can't wait to kick Gaoxian out of the trading market.
Today, Company announced:
The Company has on 2 November 2011 filed with KRX its official objection to KRX's decision to delist its KDRs ("Objection"). Subsequent to the Company's filing of the Objection, KRX has responded by announcing that it would convene a meeting of its KOSPI Market Listing and Disclosure Committee within fifteen (15) days of receiving the Objection to deliberate on its decision to delist the KDRs. The Company would be able to make further representation at such meeting and
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