This stock is getting the cold turkey now, volume is low, buying queue dwindling. I believe in the short term price might drop further to 7 cents, or even 6.5 cents. However, barring accounting frauds, I think 6.5 cents is about the lowest it can get le.
Be patient, of the long list of s-chips recommended by CIMB, only a few has not raise funds from the market, that shows the the cash value of ChinafibreT is not due to fiancing reasons. It is also not having earning problems or just finish any special audit, earning should be strong.
SHould recover a bit by Q1 and do even better with Q2, since much visibility will be shown.
Pateince...
If it goes further south, I will be very sad cos my entry price was at 10c.
At 6.5c, that is a hefty 35% loss. Anyway, I'll hold.
If this bugger does go up, I reckon the cheong will be very fierce too.
Just waiting for the "cheong" surprise in one fine day.
Cheers.
[url=http://www.nextinsight.net
/story-archive-mainmenu-60/903-2010-/3291-china-fibretech-sino-grandness-what-analysts-now-say]GALLANT, CHINA FIBRETECH, SINO GRANDNESS: What analysts now say..[/url]...
• Of the incumbents in the Chinese textile industry, we would like to highlight China Fibretech as a potential outperformer. 4Q10 performance is expected to pick up. At S$0.085, the stock’s net cash per share of S$0.145 is 1.7x higher than its existing share price.
China Fibretech is also trading at 0.43x P/BV. The strong net cash per share offers a high margin of safety for investors, as China Fibretech will be able to withstand external shocks with a strong cash balance. At such attractive valuations, we expect China Fibretech to receive strong interest from the market going forward.
Another s- chip passion holdings receive an cash offer to bring the company private. This follow closely after Sinomem. There is an article in channelnewsasia that state that more s-chips might seek to dual list or relist due to poor valuation in singapore.
www.channelnewsasia.com/stories/singapor...view/1115616/1/.html
I hope someone take chinafibreT private. It has cash of slightly above 13 cents per shares, any cash offer should either match this or better it to stand a chance of getting shareholder approval. From my personal perspective, I would think china fibreT makes a good candidate for privatization. Here are some of the reasons. 1) net assets is at 20 something cents, even if they pay 14 centa for fibreT, they still gain. 2) as compared to some other s-chip highlighted by cimb, chinafibreT doesn't have flat earning problem, cash due to several rights issues exercise, or went through any special audit. (shall not mention names case being accused of talking down market) 3) trailing PE is 6 times, for 2010, one of the most lousy earning year, going forward PE should improve significantly. Reason being q1 predictably will already be good, from receivables and turnover rate from it's last quarter results. Management is optimistic about 2011, textile industry expect to expand in 2011. 4) china fibreT while dependent on the textile industry, is not a manufacturing company, rather it is a service provider, and mainly dyeing services although they are trying to diversify. Dyeing is a highly polluting industry, PRC will not freely issue more licenses for new entrants, in fact there might be some consolidation of these highly polluting industries. Hence it makes strategy sense to acquire fibreT. Well, I feel that it's quite a sad thing to see so many companies seeking dual listing or relisting or privatizing. It goes on to say that Singapore investors cannot value companies fairly. I wonder really why is this happening since Singapore is a financial hub? I can't help but feel that the sgx has to bear some responsibilities. Has sgx make it too easy for s-chips to list in Singapore? Has supervision and regulation of these companies being too lax? While every exchanges has it's fair shares of rouge companies, it seems that sgx has allow this to become not an isolated problem of dishonest management of individual companies but a systematic and structural loophole that rouge companies exploit. Has sgx done enough to educate the public? They have let a few black sheeps affect the whole herd but they are not really bothered as it's the shareholders who bear the risks. Ok I finish grumbling.
I did some analysis of the 2 list of companies thought to be potential targets for privatization by Kim Eng and cimb, and found that 7 companies appeared in both list. I added more criteria to the list,On top of criteria such as P/B and cash holdins, such as the MRQ ROE, 5 yr av. ROE, MRQ ROA, 5yr av. ROA, MRQ growth in sales, 5yrs Av. Growth in sales. Criteria which I think matters to potential buyers of these comPanies. I rank the companies in each of these criteria except that I combine and av the findings for ROA and ROE, and give a score for these companies wIth companies with a higher ranking getting a higher score. I leave out chinasing investment in my comparison because it doesn't have data for 5 yr av. Here is my finding: Sino construction and Fujian zhenyun tie at the top, Follow by china fibreT and china bearing Singapore tie at second, Follow by china Haida then changtian plastic. Other observations, Fujian zhenyun is the only company with positive growth in sales in the MRQ and 5 yrs av. China fibreT has a whopping 365% growth in revenue in MRQ. China fibreT, changtian and zhenyun are the 3 companies with at least about 10% returns in assets and equity for both most recent quarter and five year av. Seems like I have more companies to look deeper at. Fujian zhenyun and sino construction definitely be at my radar screen. All data taken from Reuters
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