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.
SGX really lousy lo... cause a lot of our hard earn money to drain away into south china sea..... bring in so many germs into our exchange.... now so many investors infected with the viruses.... hai hai... drop our water face... how to become world class exchange ?? I guess can only become world of china germs...
the reason why china stock are cheap or penny is due to the danger it have thus one must be very careful and run if something is no right or when hear any 'feng sheng'.. even something a bit kiasu is better than loss money... happi chinese new year guys and hope for any post cny rally to come, HUAT AH!
can write in to SGX and enquire what can u do abt this current situation?
maxcty ( Date: 12-Feb-2010 18:49) Posted:
me 10 lots...about 3K plus..also alot to me loh..sian..tot can use this baby to earn my proposal ring to my wife to be...haha...
just hope that SGX can help us in a way....
street81 ( Date: 12-Feb-2010 18:23) Posted:
i think short term better dun touch C stocks la. When I was in HK 2 weeks ago, i heard the bad news and quickly ask my colleague to sell cos i have 5 lots with him, he sold mine (made $150) and said he wants to hold the other 10 + 5 lots for another colleague.....he die die want to hold, now die liao lor...nxt wednesday see his face also dunno how...altho $5k plus only but still a lot to me lo
do agree with you...PRC is screw...cunning and full of rubbish...
out-of-the-box ( Date: 12-Feb-2010 18:54) Posted:
I am sure your sincereness will move her heart, don't hope for C Milk to help you and China is going to raise reserve rate again.. and US may remove "help packages" and rise interest rate so what do you guys think? Feb and Mar stock index to moving down and stabilise in Angust before it go up
I am sure your sincereness will move her heart, don't hope for C Milk to help you and China is going to raise reserve rate again.. and US may remove "help packages" and rise interest rate so what do you guys think? Feb and Mar stock index to moving down and stabilise in Angust before it go up
me 10 lots...about 3K plus..also alot to me loh..sian..tot can use this baby to earn my proposal ring to my wife to be...haha...
just hope that SGX can help us in a way....
street81 ( Date: 12-Feb-2010 18:23) Posted:
i think short term better dun touch C stocks la. When I was in HK 2 weeks ago, i heard the bad news and quickly ask my colleague to sell cos i have 5 lots with him, he sold mine (made $150) and said he wants to hold the other 10 + 5 lots for another colleague.....he die die want to hold, now die liao lor...nxt wednesday see his face also dunno how...altho $5k plus only but still a lot to me lor
The Singapore Exchange is demanding answers from China Milk Products Group Ltd after the latter said it was in default on its repayment obligations on its convertible bonds as it does not have sufficient funds outside China to effect the early redemption.
SGX, the market regulator, said it ' takes a serious view of this matter and requires the Board to immediately address' certian issues.
These include an update on the status of the company's operations; and the specific steps the board intends to take to address the company's operations, state of affairs and going concern status, and the respective timelines.
The company had earlier said most of its funds are localized in the PRC and it is unable to gauge the approval process by the State Administration of Foreign Exchange (SAFE) on the remittance of the money out of PRC.
On January 5, 2007, China Milk issued 5 year zero coupon convertible bonds (CB) with an aggregate principle amount of US$150 million.
The holders of the CB have a put option on 5 January 2010 requiring the company to redeem all or some of the CB.
SGX is seeking clarification on whether the company has sufficient funds in its bank accounts for the bond repayment should SAFE approval for the remittance of funds out of the PRC be obtained.
SGX also demanded to know the board's views on whether the company is able to operate as a going concern.
i think short term better dun touch C stocks la. When I was in HK 2 weeks ago, i heard the bad news and quickly ask my colleague to sell cos i have 5 lots with him, he sold mine (made $150) and said he wants to hold the other 10 + 5 lots for another colleague.....he die die want to hold, now die liao lor...nxt wednesday see his face also dunno how...altho $5k plus only but still a lot to me lor
First 1 to quit was CFO and today, Chairman of Audit Committee & Independent Director- Sum Yee Loong also quit. Both are responsible for Financial Reporting, & cannot produce 3Q results. It's another time-bomb !
i have 350 lots. nvm la, its CNY le, let us all here juz enjoy wif our family n love one first, we shall come back. like some bro here say for milk, wat we k do now is juz hope lor, nothing mux we can do now. look on the bright side, if no fraud case, on paper their a/c b/l is showing 2.0 billion cash vs 1.1 billion debt. hope their restructure and delayed FR will give some good but genuine news, till then all milk holders, have a happy CNY, may all of us Huat!
i have 350 lots. nvm la, its CNY le, let us all here juz enjoy wif our family n love one first, we shall come back. like some bro here say for milk, wat we k do now is juz hope lor, nothing mux we can do now. look on the bright side, if no fraud case, on paper their a/c b/l is showing 2.0 billion cash vs 1.1 billion debt. hope their restructure and delayed FR will give some good but genuine news, till then all milk holders, have a happy CNY, may all of us Huat!
Hopefully this case will not drag down other red-chips like Yanlord and Cosco.
wishbone ( Date: 12-Feb-2010 17:10) Posted:
I fully agree with u on the 1st paragraph. Why Why Why!!!!!!!!!
I was bitten by Sino-Env and it is still suspended. Partly my mistake for not doing my homework Just by listening to the analyst's recommendation I bought it before checking. I should have sensed something wrong knowing that they have continuously delaying their financial reporting for a few quarters.
Sigh!!!!!!!!!!!
Calculation ( Date: 12-Feb-2010 16:50) Posted:
Why is the Exchange allowing so many of such time-bombs to be listed in the first place? Is this the unavoidable consequence when one privatised an organisation and tasked it with a profit mission?
Thanks goodness, I merely did a study on the company but decided not to buy into it based on some silly reasons such as "most S-chips are not reliable" and "if it is good, it should not be trading at 30 cents in a hot market".
On paper its assets > liabilities, that means shareholders should get something back if delisted. But in reality, "cash & bank balances" hv been faked, like Sino-Environ, China Fibrechem, etc., so its assets value may be inflated, thus outcome is very bleak to shareholders.
zeitgeist ( Date: 12-Feb-2010 14:02) Posted:
what's going to happen after suspension? shareholders get nothing back? this is the first time i touch S shares and its really ASS luck.
I fully agree with u on the 1st paragraph. Why Why Why!!!!!!!!!
I was bitten by Sino-Env and it is still suspended. Partly my mistake for not doing my homework Just by listening to the analyst's recommendation I bought it before checking. I should have sensed something wrong knowing that they have continuously delaying their financial reporting for a few quarters.
Sigh!!!!!!!!!!!
Calculation ( Date: 12-Feb-2010 16:50) Posted:
Why is the Exchange allowing so many of such time-bombs to be listed in the first place? Is this the unavoidable consequence when one privatised an organisation and tasked it with a profit mission?
Thanks goodness, I merely did a study on the company but decided not to buy into it based on some silly reasons such as "most S-chips are not reliable" and "if it is good, it should not be trading at 30 cents in a hot market".
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