I agree. Chinese govt won't just watch as their economy slows down. Policies are already in place to stimulate economy. Chinese funds are also entering Singapore to buy stocks of companies owned by ethnic Chinese. In 3-6 months' time, small businesses will find it easier to borrow money from banks. S chips wont stay cheap forever. Their intrinsic value will be realized eventually. As a matter of fact, I'm now 100% invested in S chips. But only in companies that are out of favor but with strong balance sheet, low Price-sale, P/B and PE ratios. Good hunting...
Well Qingmei has come out with a Profit Guidance for the 3rd quater and the stock has tanked to an all time low of S$0.111. This is way below their reported net cash position. jameskuwe just wondering what makes you keep the faith...
the fact that the chairman still has 50% of the stock help me to keep the faith. Chairman is no longer selling. only Hunter Hall is selling. It has bounced back from 11 cents before in Dec 16 2010 to 19 cents in Feb 14 2012, all in 2 months. The steep drop in price is very unwarranted and irrational. It still has strong funfamentals. u can't keep a strong stock down for long. I am waiting for 3 q and 4 q results. If the fundaments are no longer there and i dont think their problems can be resolved, i will sell no matter what the price is.
James, in short Qingmei CEO enter into a restructuring exercise to buy xibodeng and shulong, only to discover the net assets of xibodeng is not what qingmei I initially thought. The chairman went ahead nonetheless because of the brand buzhiba of xibodeng. But instead of turning around the buzhiba brand, it was closed down and the suppliers and customers of buzhiba before Jan 2011 was left high and dry because both xibodeng and qingmei refused to recognized the liability. Trust and reputation are affected and some customers reduce orders for qingmei as they do not their supplier to become a direct competitor (that doesn't show in qingmei revenue no. *own thoughts) (I already guess that the heavy selling by chairman Su might be to settle the buzhiba problem, but why can't he find a more decent investor to place out his shares but instead choose the open market o offload his shares? Watching qingmei but remain apprehensive abt jumping in, if the matter get settled, qingmei should be a multi- bagger, if not there might be more blood letting. I used to own qingmei shares. I still prefer foreland)