CHINA FIBRETECH: "Ridiculous that the market is pricing it at less than 4 cents"
CHINA FIBRETECH is an extreme case. It has net 17 cents cash per share yet its stock trades at around 3.6 cents merely. You probably can’t find another stock with such (apparent) deep value on the Singapore Exchange.
Written by Leong Chan Teik
Tuesday, 01 May 2012 12:48
What is management doing allowing the stock to go so ridiculously low
Why they did not hv a sharebuy back mandate this time round during the AGM when the previous years they had one.
Can SGX check on this counter
SGX suspended Blumount on its meteoric rise why don't SGX check on counters like China Fibretech where the price pushed down ridiculously down and the management doing nothing about it when the counter has net cash of 17c after deducting debts
Management in the previous years had share buyback mandate and last year they dropped it and now just watching the price fall.
SGX should be protecting the interest of retail investors
and don't wait till the problems get out of control
If they hv taken early action the Blumount problem would not hv been so big today affecting the whole penny stock sentiment
In the case of China Fibretech falling from 6.5c to 2.7c does not make any sense at all when they hv 21c cash and after deducting debt cash is 17c per share.Management has done nothing to support shareholders interest
The pattern the price comes down is very typical.
Blumount rose with no fundamentals and China Fibretech has dropped when supposed to be up with strong fundamentals.This is an asset light ,debtors light and cash heavy counter.Risk of losing heavily relative to net tangible asset is slim and yet has dropped miserably
At least management should hv come to the rescue if the market sentiment is the reason.
What happened to all the promises made by the directors and defending the management during the AGM
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