cheongwee, once upon a time, i was vested in Foreland. exited at 14 cents. Now waiting.....
Phillip Securities issued report --- target 19 cents. I wish you every luck!
yep
I am already in the profit. So i am lucky,
You are of the opinion that foreland fig might be fake.
But if one of the top ten customer dare to bet 5% stake in them, they must have know foreland well enough and are really in business and doing well.
And analyst calling a tg px, are their sum, i thk it is more than 19c.
thanks, so far 2011, i am lucky still in profit, because i enter at the right time.
my stake are in foreland,UMS and qingmei. just 3.
Dear yeh and cheongwee, Just to share an article I read, cotton prices have fallen 30% for the past 2 months, it is not as what some analysts claim that cotton prices are still sky high. In fact, many are predicting that it will fall further. The high price of cotton months ago create the demand for their subsititue that is yarn from nylon and polyester.. Now, they are saying the low price for cotton will also affect demand for tech fabric and the outlook isn't that bright. Of course they did mention that those with unique capabilities will survive the pressures and even emerge a winner. If your investment horizon is 3-6 mths then I think there is no prob la, but if u are holding for long, maybe u should watch the turn of macro events. I know there are some that look at tech analysis and do not bother about the news, just sharing for those who might find it useful. Btw yeh, u. May just get your crisis, the US Job data sucks big time.
news.ctei.gov.cn/296009.htm
Foreland is getting more and more analyst coverage. I am not persuaded since I hold that Foreland being an Schip should be approached with extreme caution as there are red flags here and there. I may well missed this wonderful stock's price jump to analysts' target of 19 cents but .....heck, I could also save my ass if the red flags turn out to be waving hard enough only the blind would not see.
d.o.g has raised a number of interesting points questioning the 16-c placement recently, as repro below:
Mr Tsoi claims that:
"the primary consideration for this Share Placement is to enable us to forge a closer relationship with one of our major customers whom we consider as a long term strategic investor who sees growth potential in our industry as well as Foreland Fabrictech.
...
Additionally, I expect the Share Placement to increase our free float and potentially increase trading liquidity of our shares.”
Of the 30.8m shares being sold, 20m are going to the sole owner of a top ten customer. If forging a closer relationship is truly the intention of both seller and buyer, then the 20m shares will become a long-term holding and will not actually increase the free float nor the trading liquidity.
Only the 10.8m shares sold to other parties will actually increase the free float and (maybe) improve trading liquidity. 11m shares is an approximate 2% improvement in free float. I am not convinced this will meaningfully improve trading liquidity.
I wonder why the buyer is paying a 33% premium given that he could easily buy the shares in the open market over several weeks. He only needs to instruct his broker to buy for him, setting pricing and volume limits. The stock trades a few hundred thousand shares a day, and this year there were days when volume was in the millions. Since there are about 500m shares outstanding, after buying 20m shares he will only reach 4% and not have to disclose.
While I do not have any proof of nefarious intent, it seems highly unusual for any sensible person, whether a bona fide businessman or a stock market investor, to voluntarily pay a 33% premium. If anyone can put forth a few good reasons, I would like to hear them.
Note that in some cases there are valid reasons to pay a large premium, for example:
1. Takeovers, where getting control allows operational changes; or
2. There is a side letter that provides for unusually favourable business terms in future
#1 is not happening in this case. It has not been disclosed whether #2 is in operation. If #2 is the case, the terms might be injurious to the company as to pricing, credit terms etc. Only time will tell.
NextInsight
a hub for serious investors
