As a rule, I don't recommend to buy or sell stocks since my reasons or expectations might be very different from yours. I don't mind sharing why I bought a stock though.
The S Chip I am holding on to is China Merchants Pacific or CM Pacific. It is 78% owned by a PRC SOE, pays dividends twice a year, 8-9% yield, trading below NAV, increasing profits, highly defensive business of operating toll-roads. If you wish to know more, just PM me.
maxcty ( Date: 13-Feb-2010 21:29) Posted:
what S chips u recommend?
grandmaster89 ( Date: 13-Feb-2010 21:22) Posted:
Don't invest in any S Chips unless they are relatively debt-free and have a history of creating value for shareholders - years of profit growth and returning at least 30% of their earnings back to shareholders via dividend payouts.
My S Chips has a policy of returning at least 50% of their earnings back to shareholders though they usually exceed it slightly to 53-60% over the past few years which is a good thing. When they pay the dividends, I am certain that their earnings are real since they cannot inflate it and yet pay a dividend.
Don't invest in any S Chips unless they are relatively debt-free and have a history of creating value for shareholders - years of profit growth and returning at least 30% of their earnings back to shareholders via dividend payouts.
My S Chips has a policy of returning at least 50% of their earnings back to shareholders though they usually exceed it slightly to 53-60% over the past few years which is a good thing. When they pay the dividends, I am certain that their earnings are real since they cannot inflate it and yet pay a dividend.
Don't invest in any S Chips unless they are relatively debt-free and have a history of creating value for shareholders - years of profit growth and returning at least 30% of their earnings back to shareholders via dividend payouts.
My S Chips has a policy of returning at least 50% of their earnings back to shareholders though they usually exceed it slightly to 53-60% over the past few years which is a good thing. When they pay the dividends, I am certain that their earnings are real since they cannot inflate it and yet pay a dividend.
thanks brother. was not in sg to monitor..haiz...there goes my Lau Poh Ben....sian..
anyway Happy CNY to u..
dealer0168 ( Date: 13-Feb-2010 17:11) Posted:
U guys should have offload it when i put up this update. loh.............
dealer0168 ( Date: 25-Jan-2010 21:23) Posted:
Becareful.....read below:
Six Singapore-listed China firms can’t repay debt, SCMP says
Written by Bloomberg
Monday, 25 January 2010 14:33
Six of the 11 Chinese companies listed in Singapore that sold convertible bonds between 2005 and 2008 have said they are unable to repay debts, the South China Morning Post reported, citing an investor association official.
The Securities Investors Association of Singapore asked the Chinese government to discipline the companies since Singapore doesn’t have the authority to do so, Chairman David Gerald said, according to the Hong Kong-based newspaper. The association represents 4,000 small shareholders, the report said.
Steel group Delong Holdings and developer Sunshine Holdings have reorganised their finances, while the other four companies are negotiating with creditors, the report said.
Delong said in September that it planned to restructure about 1.5 billion yuan ($308 million) of convertible bonds due in 2012 and Sunshine Holdings said in the same month that it reached a settlement agreement on US$120 million ($168 million) of loans.
Delong Holdings Chairman Ding Liguo didn’t return calls from Bloomberg News seeking comment today while Foo Soon Soo, joint secretary for Sunshine Holdings, declined to comment.
China Printing & Dyeing Holdings, China Milk Products Group, Sino-Environment Technology Group and FerroChina are the other companies named by the SCMP.
China Printing said Oct 26 it was in restructuring talks with a potential investor, then said Jan. 21 that the Singapore Exchange ordered it to delist by Feb 12. China Milk said on Jan 5 that it wouldn’t be able to meet a repayment deadline for convertible bonds due in 2012 because it was awaiting approval from China’s State Administration of Foreign Exchange.
Sino-Environment, a provider of waste-treatment services, said in July that it couldn’t pay interest on $149 million of convertible bonds and asked creditors for more time to review its finances. Steelmaker FerroChina said on Dec 17 that the Singapore bourse asked it to delist after saying in October 2008 that it was unable to repay 706 million yuan of loans amid the credit crisis.
Calls to the offices of China Milk, China Printing, Sino- Environment and FerroChina weren’t immediately answered.
To be frank Stock got suspense is no play play things.
dealer0168 ( Date: 13-Feb-2010 17:11) Posted:
U guys should have offload it when i put up this update. loh.............
dealer0168 ( Date: 25-Jan-2010 21:23) Posted:
Becareful.....read below:
Six Singapore-listed China firms can’t repay debt, SCMP says
Written by Bloomberg
Monday, 25 January 2010 14:33
Six of the 11 Chinese companies listed in Singapore that sold convertible bonds between 2005 and 2008 have said they are unable to repay debts, the South China Morning Post reported, citing an investor association official.
The Securities Investors Association of Singapore asked the Chinese government to discipline the companies since Singapore doesn’t have the authority to do so, Chairman David Gerald said, according to the Hong Kong-based newspaper. The association represents 4,000 small shareholders, the report said.
Steel group Delong Holdings and developer Sunshine Holdings have reorganised their finances, while the other four companies are negotiating with creditors, the report said.
Delong said in September that it planned to restructure about 1.5 billion yuan ($308 million) of convertible bonds due in 2012 and Sunshine Holdings said in the same month that it reached a settlement agreement on US$120 million ($168 million) of loans.
Delong Holdings Chairman Ding Liguo didn’t return calls from Bloomberg News seeking comment today while Foo Soon Soo, joint secretary for Sunshine Holdings, declined to comment.
China Printing & Dyeing Holdings, China Milk Products Group, Sino-Environment Technology Group and FerroChina are the other companies named by the SCMP.
China Printing said Oct 26 it was in restructuring talks with a potential investor, then said Jan. 21 that the Singapore Exchange ordered it to delist by Feb 12. China Milk said on Jan 5 that it wouldn’t be able to meet a repayment deadline for convertible bonds due in 2012 because it was awaiting approval from China’s State Administration of Foreign Exchange.
Sino-Environment, a provider of waste-treatment services, said in July that it couldn’t pay interest on $149 million of convertible bonds and asked creditors for more time to review its finances. Steelmaker FerroChina said on Dec 17 that the Singapore bourse asked it to delist after saying in October 2008 that it was unable to repay 706 million yuan of loans amid the credit crisis.
Calls to the offices of China Milk, China Printing, Sino- Environment and FerroChina weren’t immediately answered.
U guys should have offload it when i put up this update. loh.............
dealer0168 ( Date: 25-Jan-2010 21:23) Posted:
Becareful.....read below:
Six Singapore-listed China firms can’t repay debt, SCMP says
Written by Bloomberg
Monday, 25 January 2010 14:33
Six of the 11 Chinese companies listed in Singapore that sold convertible bonds between 2005 and 2008 have said they are unable to repay debts, the South China Morning Post reported, citing an investor association official.
The Securities Investors Association of Singapore asked the Chinese government to discipline the companies since Singapore doesn’t have the authority to do so, Chairman David Gerald said, according to the Hong Kong-based newspaper. The association represents 4,000 small shareholders, the report said.
Steel group Delong Holdings and developer Sunshine Holdings have reorganised their finances, while the other four companies are negotiating with creditors, the report said.
Delong said in September that it planned to restructure about 1.5 billion yuan ($308 million) of convertible bonds due in 2012 and Sunshine Holdings said in the same month that it reached a settlement agreement on US$120 million ($168 million) of loans.
Delong Holdings Chairman Ding Liguo didn’t return calls from Bloomberg News seeking comment today while Foo Soon Soo, joint secretary for Sunshine Holdings, declined to comment.
China Printing & Dyeing Holdings, China Milk Products Group, Sino-Environment Technology Group and FerroChina are the other companies named by the SCMP.
China Printing said Oct 26 it was in restructuring talks with a potential investor, then said Jan. 21 that the Singapore Exchange ordered it to delist by Feb 12. China Milk said on Jan 5 that it wouldn’t be able to meet a repayment deadline for convertible bonds due in 2012 because it was awaiting approval from China’s State Administration of Foreign Exchange.
Sino-Environment, a provider of waste-treatment services, said in July that it couldn’t pay interest on $149 million of convertible bonds and asked creditors for more time to review its finances. Steelmaker FerroChina said on Dec 17 that the Singapore bourse asked it to delist after saying in October 2008 that it was unable to repay 706 million yuan of loans amid the credit crisis.
Calls to the offices of China Milk, China Printing, Sino- Environment and FerroChina weren’t immediately answered.
The problem with livestock companies is that their assets are living things. If the company is unable to function, its day to day operations like FEEDING the cow etc will be disrupted due to workers lay-off and so on. This may affect its NAV in the future.
Its problem will not be solved soon. First, you have to wait for a CFO to be appointed to carry out the negiotiations.
Sometimes follow the chart will be safe, cut if it breaks the floor or price channel, so don't need to listen to analysts' recommendations & reports. No matter how bullish they claim to be, if the chart show otherwise, never get in. I'm lucky managed to get out at 0.40 when it is still on the uptrend. Thanks to those who recommended at that time but when it turns down, we will be responsible to run ourselves. Nobody expect it to turn out like this previously. Market changes everyday & every minute, a risky business!
I wouldn't avoid all S Chips if they are well-run, have excellent policy of returning earnings to shareholders and a strong parent company.
Anyhow, don't base your investment decision on an analyst buy rating or forummers call. Ultimately its your money and you should be the one deciding whether is the company in good shape. Personally, I thought that the company was in a terrible state for the past 12 months based on its atrocious earnings and its failure to buy back its bonds in 1H 09 when its CB was trading below par value. I invested a small sum thinking it might be a turnaround play but when its earnings fell flat, I divested immediately. Don't ever hold on to a loser. If your company finances starts to get hit, it is best to divest.
maxcty ( Date: 12-Feb-2010 22:19) Posted:
avoid S chip stocks...can burn our hard earned money anytime..esp china sectors...
this is really sheets milk company that everyone recommend a 'BUY'...what a joke...
Actually, we should always look at all companies we hold on to. Even local companies have fallen to bankruptcy before. Don't be complacent and yet don't neglect all S Chips as well. There are good value plays out there though I would avoid the punters favourite. Currently the only S Chips I am holding on to is China Merchants Pacific as a dividend play with great potential for capital appreciation.
Well said Grandmaster89. We have to be always on the lookout and determine the soundness of the company before putting our hard earned money into it. As I said previously, once there are some irregularities on the reporting, even delay on reporting can be some tell-tale sign of something "fishy" going on.
Sad that I did not learn this early enough to prevent losing money on some of the counters.For the time being, I will avoid S chip stocks. I have lost faith on those penny stocks of those S chip.Really Heart Pain
Whatever for now, just enjoy the CNY and be happy. In anyhow we can not do anything to salvage the situation but just have to wait for a better tomorrow.
Gong Xi Fa Cai
grandmaster89 ( Date: 12-Feb-2010 21:49) Posted:
It is not SGX job to regulate companies and audit their finances. Such
a role doesn't belong to the bourse operator - it will be insane to
manage 700 companies finances and liabilities. This job belongs to the
auditors. If the auditors have done their due diligence, it will be a
lot more difficult to commit fraud. But then again, if the company
deliberately seeks to commit fraud, even auditors will not have an easy
time uncovering them. If you want someone to blame, don't blame SGX. It
should the Management and to some extent the auditors.
The key thing is don't ever be complacent or fall in love with a company. There were numerous warning signs emitting from the company over the past 12 months. I was a shareholder for a short period of time but I took profit after their disastrous results in July 09. The company did not perform a turnaround, instead it kept reporting decreased earnings for the next 2 quarters. In Jan 10, it mentioned that it had problems repaying the bond. This month, its CFO (whose main job was the CB) resigned followed by a newspaper article from SCMP detailing that CM has defaulted from the bond. 2 weeks later, the stock was suspended. Essentially, investors had the option to sell over the past 4 weeks at around 30-40 cents yet people choose to wait hiaz.
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