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China Minzhong Food forum

Hope the management is confident enough to lift trading halt and may need to standby fire-power to support the price. Else if price plunge further..halt again meh? Then will be really worse for investors' confidence liao!

Peter_Pan      ( Date: 31-Aug-2013 16:28) Posted: If resume trading...Prediction: 70% chance drop another 10-20% Prediction: 30% chance rise 10-15%

 

坐 山 观 虎 斗

一 山 比 一 山 高 ， 强 中 自 有 强 中 手 吧 ！

 

Must study CMZ's Response and wait and see whether Glaucus counter respond again. Let them fight it out first until dust settles.

rabbitfoot      ( Date: 31-Aug-2013 17:42) Posted: So can q 100lots at 0.39. Huat ahhh.,,. Peter_Pan      ( Date: 31-Aug-2013 16:28) Posted: If resume trading...Prediction: 70% chance drop another 10-20% Prediction: 30% chance rise 10-15%

 

So can q 100lots at 0.39. Huat ahhh.,,.

Peter_Pan      ( Date: 31-Aug-2013 16:28) Posted: If resume trading...Prediction: 70% chance drop another 10-20% Prediction: 30% chance rise 10-15%

 

skbeng greetings. you are right. in this i am greedy if it is 10c. i take some dividend to gamble on it only. don't bet my life on it. if belly up got two big boys accompany also worth it for me.

Monday see if the chance come or not for wager?

know your own risk appetite to gamble.

 

The greedy people lah, those that think $0.10 is cheap and if become $0.20, $0.30, they will double, triple their gamble etc.
But if company get delisted or bankrupt or CEO run-road, they lost everything loh.

beginners      ( Date: 31-Aug-2013 14:51) Posted: Hi all, I have one question which I don't understand. If investors or ppl who already know the bad news and every of them starts to sell, to throw or sell short who is the stupid party that still buying or eating all the sell queue shares?

 

If resume trading...Prediction: 70% chance drop another 10-20%



Prediction: 30% chance rise 10-15%   

 

Glaucus accused China Minzhong for misleading investors over its sales and expenditure. It alleged that a Taiwan-based food distributor that China Minzhong said was its largest customer between 2007 and 2009 was only incorporated in November 2009, suggesting the company simply fabricated the sales figures in its prospectus.

The S-chip was listed here in April 2010.

Glaucus had also alleged that, according to filings by China State Administration for Industry and Commerce (SAIC), China Minzhongs second-biggest customer had zero revenue and zero cost of goods sold in 2009, instead of sales of 142 million yuan as claimed.

  _______________________________________________________________________________________________

Wow...same wayang again...tried to fabricate the sales figures to be listed in Singapore to con $$$?

By the way, if you have been dealing businesses in China, creating fake invoices are common in many companies. They can have no invoice / fake invoice for any real dealings. They can create sales invoices for a no-sale and the goods are still in their warehouses but the stocks are not included in their balance sheet. They will include as and when they need / want. In short, they just want their accounts book to look good and invite investors. Their P/L statement can never tally in reality.

Companies inventories can increase suddenly after listed a while & sales decreased. Before listed, their sales figures are very fantastic and promising. They just need to fake the past 3 years accounts to get listed.


Still dont believe?


Check what are the reasons to those S-chips which had been suspended / delisted, you will be convinced.

After suspension, top audit firms were engaged. They took YEARS and still couldnt resolve to resume trading....

Maybe just waiting to be delisted, which I believe the companies are hoping too. The company already got their money they wanted to.


Never trust S-chips - can do trading, cannot invest in them or else ...erm...


 

 

The Chinese management starts to wayang and try to smoke their way out?


IG Markets strategist Kelly Teoh said: The main issue here is they are unable to refute the claims in a very clear and strong manner, which investors are expecting. That reflects the quality of management.

 

Peter_Pan      ( Date: 31-Aug-2013 14:14) Posted: Short-seller Glaucus does not understand our business model: China Minzhong   BY  LEE YEN NEE  -  30 AUGUST SINGAPORE ? China Minzhong Food Corp yesterday sought to refute a report by short-seller Glaucus Research that accused the Singapore-listed company of widespread accounting irregularities, saying it showed ?a complete lack of understanding? of the Chinese vegetable producer?s business model. The S-chip said it was preparing a detailed response to address issues raised by California-based Glaucus, which will be released by the end of this week, in a bid to restore investor confidence in its business model and financial performance. The Glaucus report triggered a sell-down in China Minzhong?s shares on Monday, which wiped out S$318 million or almost half of its market value. Trading was halted on Monday morning at China Minzhong?s request and the company had extended the halt until the end of today?s session. The Fujian-based company said in a statement to the SGX yesterday morning: ?Most of the issues raised by Glaucus with regard to the financials of the company were nothing new and arose out of a complete lack of understanding of the company?s business model as well as the operating environment in China.? ?They have also failed to analyse the company?s growth path over the years and have chosen to take snapshots of the company?s results at specific times,? it added. Analysts said China Minzhong?s business of producing and distributing vegetables was not a complex one and it should have been relatively straightforward for the company to explain itself and refute the claims by Glaucus. IG Markets strategist Kelly Teoh said: ?The main issue here is they are unable to refute the claims in a very clear and strong manner, which investors are expecting. That reflects the quality of management. ?For the time being, I don?t think it is giving investors any confidence at all in the company?s stock.? China Minzhong yesterday also delayed the release of its corporate results for the financial year ended June 30, originally scheduled before trading hours, to aftermarket hours ?to facilitate the verification and confirmation of certain issues referred to in the (Glaucus) report?. It also postponed its results briefing, which was slated for yesterday afternoon. For the year ended June 30, China Minzhong reported net profit grew 11.1 per cent to 755.1 million yuan (S$157 million) as revenue surged 26.4 per cent to 3.25 billion yuan. It attributed the improved performance to strong demand from existing and new customers, as well as contributions from new productive farmland. The company also declared a dividend of 1 Singapore cent per share. In a 49-page report released on Monday morning, Glaucus accused China Minzhong for misleading investors over its sales and expenditure. It alleged that a Taiwan-based food distributor that China Minzhong said was its largest customer between 2007 and 2009 was only incorporated in November 2009, suggesting the company ?simply fabricated the sales figures in its prospectus?. The S-chip was listed here in April 2010. Glaucus had also alleged that, according to filings by China?s State Administration for Industry and Commerce (SAIC), China Minzhong?s second-biggest customer had ?zero revenue and zero cost of goods sold? in 2009, instead of sales of 142 million yuan as claimed. China Minzhong shares plunged 47.8 per cent from last Friday?s close of S$1.015 apiece to 53 cents before trading was halted on Monday. The company said it would take ?all necessary steps? to defend its reputation, including legal action against parties spreading false information. But analysts warn that the stock will continue to languish unless the S-chip is able to defend its accounts. ?The allegations made are very specific and these are huge claims, but the statement (by China Minzhong) didn?t directly refute any of these. The next statement has to be stronger in addressing the claims in order to switch investors over and regain some market value in its stock,? Ms Teoh said. (Source: Today)

 

IG Markets strategist Kelly Teoh said: " The main issue here is they are unable to refute the claims in a very clear and strong manner, which investors are expecting. That reflects the quality of management.

" For the time being, I don't think it is giving investors any confidence at all in the company's stock."

China Minzhong shares plunged 47.8 per cent from last Friday's close of S$1.015 apiece to 53 cents before trading was halted on Monday. The company said it would take " all necessary steps" to defend its reputation, including legal action against parties spreading false information.

But analysts warn that the stock will continue to languish unless the S-chip is able to defend its accounts.

" The allegations made are very specific and these are huge claims, but the statement (by China Minzhong) didn't directly refute any of these. The next statement has to be stronger in addressing the claims in order to switch investors over and regain some market value in its stock," Ms Teoh said. (Source: Today)

 

those with vested interest? They must support and stabilize px, and thereafter to create a view among BB/retailers that the stk is supported and entice ppl to buy. They can then let go of their holdings to those " turnaround company investors" who tidies up the company, repackage it and resell it.

beginners      ( Date: 31-Aug-2013 14:51) Posted: Hi all, I have one question which I don't understand. If investors or ppl who already know the bad news and every of them starts to sell, to throw or sell short who is the stupid party that still buying or eating all the sell queue shares?

 

Hi all, I have one question which I don't understand. If investors or ppl who already know the bad news and every of them starts to sell, to throw or sell short who is the stupid party that still buying or eating all the sell queue shares?

 

Totally agree!

Peter_Pan      ( Date: 31-Aug-2013 14:17) Posted: Imagine if trading is not halted...the share price might have continued plunging more than 50%! ZeeZee      ( Date: 31-Aug-2013 14:13) Posted: I believe the huge drop is just a self fulfilling prophecy. On a feedback loop

 

Imagine if trading is not halted...the share price might have continued plunging more than 50%!

ZeeZee      ( Date: 31-Aug-2013 14:13) Posted: I believe the huge drop is just a self fulfilling prophecy. On a feedback loop. Peter_Pan      ( Date: 31-Aug-2013 13:53) Posted: I think it is not easy for them to refute Glaucus Research's reports. Hope they can bring back investors' confidence. For the share price to plunge 50% in 2 hours is no joke...who is throwing at whatever bids available??? Those who knows " something" threw one??? Or those out of fears kiasi ones threw one??? The management really have to come out with a very strong defense Response!!! Investors' hopes are in them liao!!!

 

Short-seller Glaucus does not understand our business model: China Minzhong

  BY  LEE YEN NEE  -  30 AUGUST

SINGAPORE ? China Minzhong Food Corp yesterday sought to refute a report by short-seller Glaucus Research that accused the Singapore-listed company of widespread accounting irregularities, saying it showed ?a complete lack of understanding? of the Chinese vegetable producer?s business model.

The S-chip said it was preparing a detailed response to address issues raised by California-based Glaucus, which will be released by the end of this week, in a bid to restore investor confidence in its business model and financial performance.

The Glaucus report triggered a sell-down in China Minzhong?s shares on Monday, which wiped out S$318 million or almost half of its market value. Trading was halted on Monday morning at China Minzhong?s request and the company had extended the halt until the end of today?s session.

The Fujian-based company said in a statement to the SGX yesterday morning: ?Most of the issues raised by Glaucus with regard to the financials of the company were nothing new and arose out of a complete lack of understanding of the company?s business model as well as the operating environment in China.?

?They have also failed to analyse the company?s growth path over the years and have chosen to take snapshots of the company?s results at specific times,? it added.

Analysts said China Minzhong?s business of producing and distributing vegetables was not a complex one and it should have been relatively straightforward for the company to explain itself and refute the claims by Glaucus.

IG Markets strategist Kelly Teoh said: ?The main issue here is they are unable to refute the claims in a very clear and strong manner, which investors are expecting. That reflects the quality of management.

?For the time being, I don?t think it is giving investors any confidence at all in the company?s stock.?

China Minzhong yesterday also delayed the release of its corporate results for the financial year ended June 30, originally scheduled before trading hours, to aftermarket hours ?to facilitate the verification and confirmation of certain issues referred to in the (Glaucus) report?.

It also postponed its results briefing, which was slated for yesterday afternoon.

For the year ended June 30, China Minzhong reported net profit grew 11.1 per cent to 755.1 million yuan (S$157 million) as revenue surged 26.4 per cent to 3.25 billion yuan. It attributed the improved performance to strong demand from existing and new customers, as well as contributions from new productive farmland. The company also declared a dividend of 1 Singapore cent per share.

In a 49-page report released on Monday morning, Glaucus accused China Minzhong for misleading investors over its sales and expenditure. It alleged that a Taiwan-based food distributor that China Minzhong said was its largest customer between 2007 and 2009 was only incorporated in November 2009, suggesting the company ?simply fabricated the sales figures in its prospectus?.

The S-chip was listed here in April 2010.

Glaucus had also alleged that, according to filings by China?s State Administration for Industry and Commerce (SAIC), China Minzhong?s second-biggest customer had ?zero revenue and zero cost of goods sold? in 2009, instead of sales of 142 million yuan as claimed.

China Minzhong shares plunged 47.8 per cent from last Friday?s close of S$1.015 apiece to 53 cents before trading was halted on Monday. The company said it would take ?all necessary steps? to defend its reputation, including legal action against parties spreading false information.

But analysts warn that the stock will continue to languish unless the S-chip is able to defend its accounts.

?The allegations made are very specific and these are huge claims, but the statement (by China Minzhong) didn?t directly refute any of these. The next statement has to be stronger in addressing the claims in order to switch investors over and regain some market value in its stock,? Ms Teoh said. (Source: Today)

 

I believe the huge drop is just a self fulfilling prophecy. On a feedback loop.

Peter_Pan      ( Date: 31-Aug-2013 13:53) Posted: I think it is not easy for them to refute Glaucus Research's reports. Hope they can bring back investors' confidence. For the share price to plunge 50% in 2 hours is no joke...who is throwing at whatever bids available??? Those who knows " something" threw one??? Or those out of fears kiasi ones threw one??? The management really have to come out with a very strong defense Response!!! Investors' hopes are in them liao!!!

 

Wonder if the market would  deem that CMZ's response & results still sound too good to be true while Oceanus's abalone mortality report still bad to be acceptable??? 

Conclusion from these cases: cannot be too good nor bad???

 

I think it is not easy for them to refute Glaucus Research's reports. Hope they can bring back investors' confidence. For the share price to plunge 50% in 2 hours is no joke...who is throwing at whatever bids available??? Those who knows " something" threw one??? Or those out of fears kiasi ones threw one??? The management really have to come out with a very strong defense Response!!! Investors' hopes are in them liao!!!

 

CMZ's Response still not out yet...

 

This counter just need an independent body to verify that there is real money in their accounts..it will do fine to recover from this saga. Too many S chip company claiming lots of fund but turned out empty...causing many investors to be sceptics.
It's all about trust!