Hi all, I was just thinking. The selldown was obviously fast and furious. The strange thing is that why hasn\'t there being any insider selling unless I\'m missing something here? If there is really something fundamentally wrong then I\'m sure there will be insider disposal. Am I missing something or are the fears overdone???
Hi Gary, I checked with my broker. The selling is done mainly by the institutions. They are now very scared of these scandals and would flee at the slighest fear. The problem here is that Fibrechem has all along been a PRC company with good corporate governance. Many Hong Kong fund managers like this company a lot. So when a good role-model company suddenly reports corporate governance issues, the funds effectively gave up hopes that there will be any decent companies around.... hence the selling.
the selling will probably carry on for another 2-3 weeks. But fears will still be there.... If nothing else exploded, the s-chips may make a comeback in 2H2009.
thanks for the update. If that is the fear then at least the fears are overplayed and those funds will be back. I\'m sue there are still good guys (Chinese companies) out there and once the fear factor is gone in about 3-6 months those funds will be back in droves. As long as the insiders are not selling out they are in the same boat as the small guys (us, we should be alright 1 year from now. Let the selling go on until they are finally liquidated and then the gradual buying will begin. So far huge volumes are with Hongxing and apparently they are not done with the selling yet judging by the volumes. By the way, can you ask your broker to see who is buying in such huge volumes?? Someone is seeing value here. It can\'t be the retailers as they are all scared out of their wits and they cannot possibly support such buy volumes. I also notice the selldown with Celestial has abated somewhat. Maybe they are near at the tailend of selling....
Fibrechem is really a sad story. I really can\'t blame everyone for being so skeptical of corporate governance of S-Chips. hose Even I am cheeze off with my level headedness. Well again this has gone beyond any fundamentals and at prices transacted now, might as well liquidate the company as there is more value in the liquidation value than the market cap of the company now. For those with heart of steel, now is the time to buy in and you either win huge or lose all. China Milk China Taisan China Zaino remains my favorite picks. Since those companies were IPO\'ed not too long ago, I\'m quite certain the books are as they are. As for China Milk, so far no issues with corporate governance and they are trading ridiculously low.
im relieved to hear that from u guys, as I am heavily invested in china shares and hope that S-chips can really rebound from this grave, no matter what the time-frame will be. My only worry is that some may just stay at this trough level despite the market upturn in time to come. Celestial looks to be recovering a bit. I have China Milk in my portfolio as well, and some darn fibre companies. Shouldnt have listened to the analysts too much.
