Those who bought will said thing to self comfort, and those who did not will said thing that break the heart of those who bought.
Don't you people know this stop loss?
If you have this in place, today you will be fine, with small losses.
For those who bought, I think it is gonecase, because the world face tought time ahead, and it is not going to be a few quater. If we are lucky, it is 2 yrs.
But at this point in time, I believe it is too late for you to cut. So just pray hard. Wish all holder the best outcome.
Executive Chairman and Chief Executive Officer of the Company has entered into separate sale and purchase agreements with certain investors on 14 November 2012, pursuant to which High Crown agreed to dispose of an aggregate of 47,600,000 shares,representing approximately 7.0018% of the total issued share capital of theCompany, at the price of S$0.065 for each sale share.
High Crown is committed tothe Purchasers not to sell its remaining shares for a period of nine months from thedate of Disposal.
candy
The argument can never end, Some would said if the company is so good, why the director sell, but as again, in the first place, why he let his business go public,
So now, either the buyer are stupid or the seller are smart.
But at least if there is a invester, that means all those rumour are not truth. The buyer would not blindly buy what he think not worth, He would have done his home work thoruoghly before he commit. This show full confident in the company prospect.
Let see how mkt react come Monday.
I wish all holder well.
Hope Qingmei soar on Monday. Notice he sold at 6.5c higher then market.
There's something i really can't understand if what is shown on Qingmei balance sheet is real. The company has Net Cash of RMB500m after paying off ALL their liabilities.. Net Asset is worth 30cents and cash alone is close to 15cents per share. If and really if the cash is there, why does the CEO not wind up the company and assuming their PPE are disposed at $0, he will still get back cash per share of around 15cents.. It simply does not make any sense to sell off the stakes at 6.5cents as it is not only way below NAV of 30cents, but also at >50% discount to Net Cash of 15cents...
As to why there are buyers interested to buy the 7% stakes at 6.5cents, you have to go figure out urself... No name were disclosed regarding the buyers and they seems to be purposely placing out shares in such a way that the new buyers does not own more than 5% of the company so that they need not report to SGX...
Perhaps, minority shareholders (>60%) given now controlling shareholder only left with 37% stakes should come together to request the company to wind up and repay the $$ back to shareholders. It is very dangerous given that the CEO, also the Chairman of the Company, also the controlling shareholder, but with only slightly more than 37% having so much power as he can simply take the money and run road if there were any there to begin with...
Just ask yourself this simple question, if there's really a company with Net Cash of 15cents per share and last traded 6.5cents, would you be buying the shares or selling the shares? And why is the CEO/Chairman/Controlling shareholder keep on disposing the shares?
Joshua, your questions, excellent as they are, apply not just to QingMei but also quite a no. of other S-chips. The world is not so simple.
Take QingMei. With the stock at 5.1 cents, what price do you think the CEO is going to offer to delist at? 10 cents? Why should he offer 100% premium? Even at 10 cents, will there be minorities (especially funds) which will revolt against this? Look at Synear. The takeover offer is being effectively killed by a fund.
2. Why would QingMei want to stay listed? The way business owners view their business can be v different from investors. Business CEOs look at the longer term and they might see a recovery perrhaps 6 months or a year down the rd. Being listed has its benefits. I have been told this before by some management. Banks will be more willing to lend you $. Suppliers will give you better terms. Etc.
3. Specific to QingMei. perhaps the boss sold because he needed $ at the personal level, rather than anything to do with the company. I hear that this is supposed to be the biggest shoe sole supplier in China, so it's no SME that you can just take money out of and run away.
Btw, would you just run away with the $? U don't have a life after that (unless you get real lucky).
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