so which is better? China Milk or Yangzijiang? Does it look like shipbuilding industry may take some time to recover from this downturn? Is Yangzijiang buying back its own shares, and as such the CEO has recently been painting a good picture of the co, in the hope of keeping its share price?
Yangzijiang boss never painted a rosy picture of the industry. In fact, he was very upfront with the analysts and investors yesterday during a results briefing. An analyst who attended told me that the boss, Mr Ren said the winter for the chinese shipbuilding industry would last at least 2 yeas. He said that there will be ZERO new orders for the next 24 month. That is a hard truth coming from the boss himself. As for how much weightage should be assign to management. It depends on individuals. Given the massive fraud cases going around, I don\'t know how much can I trust the audited reports. Why are we paying auditors so much money if their reports cannot be trusted?
I think the general sentiment of trust level for S-Chips has been flush down the toilets...last case in point Fibrechem after seemingly good track records comes to a sudden end.
Just a crazy idea -- The concern now on the S-chips is whether the cash and cash equivalents is still in the companies. Can the Company just get the bank representative to verify the cash is still in the bank ? Just my 2-cent thought.
NextInsight
a hub for serious investors
