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China Minzhong: A fully substantiated point by point rebuttal.

Sunday, September 1, 2013

Now, we know why it took China Minzhong so long to respond to Glaucus Research. Call me impressionable but the response is rather breath taking. A shock and awe operation almost.

No effort has been spared as a full force encyclopaedic response has been issued:

See:
1. China Minzhong strongly refutes allegations.
2. Annex A to D.
3. Annex G.
4. Annex H to K.


Is China Minzhong's response good enough to restore confidence in Mr. Market?

Glaucus Research could have done the shareholders of China Minzhong's a favour if Mr. Market buys up with a vengeance upon lifting of the trading halt. Anyway, if Glaucus Research has indeed made a colossal boo-boo, they will be scrambling to cover their short position.

Well, I am only talking to myself and I could be bias since I have a long position here.

Related post:
China Minzhong: What could happen and what to do?

109 comments:

sillyinvestor said...

Hi Ak,

Look convincing, congrats!

Nightmare_Angel said...

Hi AK,

I've did a quick glance of the detailed report as well as reading through the annexes. It's detailed and the rebuts by CMZ are comprehensive. Let's see how Mr. Market reacts tmr at 9am! :)

AK71 said...

Hi Mike,

I was hoping to hear from you since I have difficulty reading all that Chinese in the supporting documents. If you say they look convincing, they must be. Thanks. :)

sillyinvestor said...

IMO, the rebuttal is strong and enough, and they have the confidence to lift the trading halt.

The only qn is why they gave only 1 order to proof transaction take place in each year, why not every invoices for the year, maybe they consider the lawyer representative statements enough.

Nonetheless, congrats to investors, you might just see you money back

Please do not stress me, I not familar with offical documents, but so far, did not spot any problems with the rebuttals except the one mentioned above,but I think it is a small issue, since the whole year DO mights add up to be in the thousands

AK71 said...

Hi Nightmare Angel,

They are really serious about putting Glaucus Research in their place. No shoddy rebuttal here.

If shareholders are firm and refuse to sell to the short sellers, Glaucus and gang would have no choice but to buy at higher prices. ;p

AK71 said...

Hi Mike,

My command of the Chinese language is only slightly better than my zero familiarity with Chinese official documents. So, you are in a position of advantage here. No pressure but thanks again. ;p

Jon Li said...

Hi AK,

First time commenting on your site, but followed your CMZ thesis for quite a while as a fellow "long" even though my position is tiny.

Like you I was quite taken aback when Glaucus published their short thesis. But the rebuttal looks authentic even though my Chinese sucks.. Will be good if more on your site who are proficient in Chinese step forward to verify.

If it is indeed the case that CMZ takes this opportunity and prove without a shadow of a doubt that it is a legitimate and well run business, then Glaucus may have done more good than harm. I already am encouraged that there has been a dividend resulting from all this.

Even though short term there may be some fleeing S-chips due to fear of more Short-seller attacks, at least if one invests in a business and it is proven a legit one with a good economic moat, then I can hold with no fear and wait for the market to become a weighing machine in the long run instead of a voting machine.

Fingers crossed this is the case. Also want to take the opportunity to thank you for your insights. All the best to you and keep it up. Cheers.

sillyinvestor said...

Haha Ak,

You need not go to the mountain to mediate, you need to go to the bank to count your money hahaha =p

You av. down at 60 cents, I feel tomorrow price will shoot up, maybe not to point before the report came about, but should be higher than 60 cents.

Just a word of cautious here, I know some ppl might not like my pouring of cold waters.

Investors who are vested should be happy, they should see their money back, but if price to rise quickly tomorrow, those without a big warchest should not chase after the price gain, or those who missed the av. down now chasing for revenue.

The ball is in glaucus court now, they should be looking through the documents now. We do not know if they are dealt an ace blow or they will serve the ball back with a wicked spin, the game is not over before the referee blow the whistle.

AhJohn said...

trade receivables go to zero, NAV would be $ 0.89 per share. Hi, AK, this is what you mentioned at previous post. I don't know anything still make you worry your investment will go to zero? Legal cost?

AK71 said...

Hi Jon,

There is certainly no way of telling exactly how Mr. Market is going to behave although we can try speculating. :)

It does seem like Glaucus Research need to do more research on their research. They probably made a colossal boo-boo. China Minzhong should seek legal recourse in such an instance, if at all possible.

I am not sure if China Minzhong has a moat but it has some competitive advantages which make them a leader in the industry.

Well, let's see how things turn out tomorrow. :)

AK71 said...

Hi Mike,

Er... not 60c. I bought more at 52c just minutes before the trading halt. Good or bad? We will know tomorrow. -.-"

If we look at the chart, previously the support was around$1.00. Is this going to be a support turned resistance?

Sage Bears said...

Congratz AK Ge. The rebuttal looks good enough to me and should put all those nayslayers who are quick to judge based on one side of the story to rest.

Pointless to debate, we will see if the market believes and buy their story at 9am tmr. As I always believe, no one throws in their hard earned money without any due diligence on their end.

Stock market

AK71 said...

Hi Ah John,

It is called "self-doubt". :)

Even now, who can say it is over? We can only say it is over when it is really over although it does look like game over for Glaucus. ;p

Anyway, for anyone who believes China Minzhong and is waiting to go long, the short selling by Glaucus and gang could have provided a great opportunity to buy the stock on the cheap.

AK71 said...

Hi beary ge,

Thanks for the encouragement. :)

Like I said in an earlier blog post on the topic, it was premature to conclude anything having just heard from Glaucus Research. China Minzhong must have their say.

Of course, now, it could also be premature to congratulate me for anything. ;p

Sage Bears said...

That's why there are always two sides to a story mah. My toilet info tell me kar kar hoot. Plus you also buy, so I also hoot! I

AK71 said...

Hi beary ge,

I had no idea that we could learn valuable inside information on companies through visiting toilets. I have much to learn from you. -.-"

Ray said...

I believe Glaucus has probably already covered most of their short position so they won't be hurt much.
Too bad I didn't manage to get any before the halt, fortune does favour the brave :)

Sage Bears said...

Latest this morning, CMZ receive letter from Indofood on possible offer.

RayNg said...

Trading halt contnue .... IndoFood make offer.

Possible Offer by PT Infofood Sukses Makmur Tbk (“PT Indofood”)

1. Possible Offer
The Board of Directors (the "Board") of China Minzhong Food Corporation Limited (the
"Company") has today received a letter ("Offer Letter") from PT Indofood Sukses Makmur Tbk
("Offeror") in relation to a possible offer (the "Offer"). The Offer, if made, is expected to be
announced later today and a copy of their Offer Letter is attached.

2. Trading Halt
Pending the receipt of the formal Offer, the Company has requested for a trading halt and
shareholders of the Company are advised to exercise caution when dealing in their shares or
otherwise taking any action in relation to their shares which may be prejudicial to their interests.
The Company will release further announcements at the appropriate junctures.

3. Directors’ Responsibility Statement
The directors of the Company (including any director who may have delegated detailed
supervision of this Announcement) have taken all reasonable care to ensure that the facts stated
and opinions expressed herein (other than those relating to the Offer) are fair and accurate and
that no material facts have been omitted from this Announcement, the omission of which would
make any statement in this Announcement misleading.

By Order of the Board
Lin Guo Rong
Executive Chairman and Chief Executive Officer
2 September 2013

SOLIDCORE said...

Dear AK,

Congrats! With your buy at $0.52 and EP currently at $0.60 as of my time of writing, that's a very delicious 15% profit.

The loss of sleep and stress paid off well :) Congrats!

AK71 said...

Hi Ray,

You think so? It means people at Glaucus have fattened their bank accounts and by not a small degree too! Grrrr...

Of course, it is also thanks to their attack that I was able to buy more at 52c. Does that make me a partner in crime? -.-"

Ray said...

oh no, not sure if indofood will delist it :( no chance to recoup my losses.

AK71 said...

Hi beary ge and RayNg,

Thanks for the heads up. If Indofood should indeed offer to take China Minzhong private, I think they will have to offer $1.12 a share which was the price they paid for GIC's former stake. :)

$1.12 is still at a discount to NAV and a relatively low PER of about 4x, iirc.

sillyinvestor said...

Hi AK,

I have a slightly different perspective from the whole episode. Money made aside, the whole saga does point to the perils of investing in China without local knowledge.

CMZ did not dispute the authenticity of the documents taken from SAIC.

So this is the third institution that might be caught "sleeping"

China trade figures does not square off with its trading partners.

China SAFE which overlook money remit offshore to pay dividends for wholly foregin-owned-enterprises (WFOE,CMZ is one), SAFE "regulates the conversion of the RMB into foreign currencies. Therefore, SAFE approval is required for companies to remit after tax profit in RMB from its PRC WFOEs into SGD to Singapore for distribution as dividend to its shareholders. The company must generally provide tax payment certificates, an audited financial report, a board resolution approving the distribution of profits, the foreign exchange registration certificate, and a capital verification report in order to obtain clearance for an overseas profit payment. hence revenue etc before they allow money of companies to be remit offshore"(quoted from Boon from VB), they have been caught sleeping too with sinopipe and china hongxing too.

So if SAIC, Trade ministry, SAFE can be caught "sleeping",its really a jungle out there.

But CMZ, money speak louder than words, that indo-china is willing to offer GO,(partial or whole) after a strong rebuttal from CMZ, will lead to rest any doubts, because value is determined by seller and buyer.

AK71 said...

Hi Solidcore,

I am happy with how things have turned out, definitely. I don't have to worry about how I might have readers who followed and could have lost big time here anymore. :D

Maybe, I will have to stop talking to myself about specific stocks from now or at least show some restraint to avoid losing sleep in future. Still thinking. :)

AK71 said...

Hi Ray,

Recoup losses? Why? We got in at pretty low prices, I remember. I think Indofood has to offer at least $1.12 a share if their aim is to privatise.

AK71 said...

Hi Mike,

I am in agreement with you and share your perspective. :)

I have learnt many things through this experience. The most important thing I have learnt is that when we invest in S-chips, we are investing in the country of China. It is like marrying the girl of my dreams means marrying her family as well which might not be as dreamy. ;p

This is, therefore, an inherent risk in investing in S-chips. So, are S-chips worth the risk?

Well, I am only human and I think I will have to remember that I am not able to see everything in anything. My level of competence was definitely brought into question in this episode and it is shown to be terribly lacking. :(

sillyinvestor said...

Hey Cheer Up AK,

Things couldn't be any better.

See:

This time, Mr market pay you for the lesson, muhahaha =)

YOu need not feel bad any any followers losing money.

There is a through discussion about Minzhong, not sure if they are other thread from you that generated so much comments, so this episode "educated" everyone with new insight.

It is very seldom Mr Market is so nice to give anyone "free" lessons,let alone pay everyone for a "lesson"

Muhahaha, I am a optimist... always looking at the bright side of life

Ray said...

Oh, if they have to buy at $1.12 then of course no losses :)

AK71 said...

Hi Mike,

Indeed so. I like the way you look at it. I didn't just get a lesson for free, I got paid to go to school. :)

I think the record number of comments any of my blog posts generated belongs to one I wrote in 2011 on my total passive income for the year from S-REITs.

However, if we total the number of comments from the recent 3 blog posts on China Minzhong vs. Glaucus Research, then, I think this takes the cake. :)

AK71 said...

Hi Ray,

That is my understanding anyway. ;)

Well, if there is no General Offer, then, China Minzhong is a very good buy at 63c which is what I see in the Buy queue now.

chrisyoong said...

I don't understand why people are queuing to buy and sell when the trading halt is still in force.

AK71 said...

Hi Chris,

There could be short sellers who are frantic by now. There could also be bargain hunters trying their luck. If only I know Mr. Market's phone number. ;p

AK71 said...

"I think Indofood sees some form of synergistic value because Minzhong is more in the upstream raw materials business and Indofood makes noodles," said Roger Tan, CEO of Voyage Research in Singapore.

" Thanks to Glaucus the price is a lot cheaper and Indofood can make a takeover at a much lower price. By taking it private, Indofood will also have more flexibility to integrate it into their business."


- Yikes! Correct or not? I thought Indofood must offer the same price they bought from GIC at $1.12 since that transaction happened less than 12 months ago. -.-

test said...

Not exactly convinced by their rebute..loo...just my personal thoughts

AK71 said...

Hi test,

All friendly, bona fide and constructive comments are welcome. :D

sillyinvestor said...

I read from VBs (http://www.valuebuddies.com/thread-738-page-57.html post568) that they can offer any price since the 6 months limitation period will be over in september.

AK71 said...

Hi Mike,

Oh, 6 months. I thought it is 12 months. -.-"

OK, now, everyone (shorts and longs) will be wondering what price Indofood is going to offer.

AK71 said...

Assuming a full GO, the war chest that Indofood needs is expected to be SGD519m (at SGD1.12/share because the Singapore Takeover Code dictates the price offered by any offerer should be set at the highest price paid in the 12 months before the offer was Announced), which forms about 1/3 of its cash balance.

- Wei Bin, Maybank Kim Eng.

104851088691912424515 said...

Latest rebuttal from Glaucus Research

http://www.martinlee.sg/glaucus-research-issues-rebuttal-china-minzhong/

AK71 said...

Wah! You nickname very hard to remember. ;p

I wonder if Glaucus Research still has an unresolved short position in China Minzhong.

AK71 said...

UOB Kay Hian Private Limited ("UOBKH") wishes to announce, for and on behalf of PT Indofood Sukses Makmur Tbk (the "Offeror"), that the Offeror has today agreed to acquire pursuant to married deals an aggregate of 25,590,000 issued and paid-up ordinary shares (the "Shares") in the capital of China Minzhong Food Corporation Limited (the "Company"), representing approximately 3.90% of the total number of issued Shares (the "Acquisition"), at the price of S$1.12 per Share.

Following the Acquisition, the Offeror owns, controls or has agreed to acquire an aggregate of 219,525,382 Shares, representing approximately 33.49% of the total issued Shares.

As a result of the Acquisition and in accordance with Rule 14.1 of the Singapore Code on Take-overs and Mergers (the "Code"), the Offeror will make a mandatory conditional cash offer (the "Offer") for all the remaining Shares, other than those Shares held by the Company as treasury shares and those Shares owned, controlled or agreed to be acquired, directly or indirectly, by the Offeror as at the date of the Offer (the "Offer Shares").

In accordance with Section 139 of the Securities and Futures Act (Chapter 289 of Singapore) and Rule 14 of the Code, and subject to the terms and conditions set out in the formal offer document to be issued by UOBKH for and on behalf of the Offeror (the "Offer Document"), the Offeror will make the Offer for the Offer Shares on the following basis:

For each Offer Share:
S$1.12 in cash

Source:
http://infopub.sgx.com/FileOpen/Offer_Announcement.ashx?App=Announcement&FileID=254812

Ray said...

OK, now there are 100,000+ buy order for $1.12.
I am guessing some people trying to earn from arbitrage. But how? Can someone enlighten me?

AK71 said...

Hi Ray,

I see buy orders at $1.13 now. I wonder who is competing with Indofood to take over China Minzhong? Mind boggling.

chrisyoong said...

AK, nice profit for you @ $1.12. Wonder what will happen when the trading halt is lifted at 3.30pm.

AK71 said...

Hi Chris,

The short sellers will be bleeding... Their turn to panic.

Cen Lee said...

I salute your balls of steel man. Looks like you gotten a new mazda instead of losing 1. Congrats!

Cory said...

Wow what a turn of Event. This is better than Movie scripts.

Congratz !

chrisyoong said...

Then you should sell at more than $1.13 to these short sellers and make them bleed more.

AK71 said...

Hi Cen,

Thanks but balls of steel are probably very heavy. Might get hernia. Don't want. ;p

AK71 said...

Hi Cory,

My heart is too weak. Hope nothing like this happens again. -.-"

AK71 said...

Hi Chris,

I decided to be nicer to the short sellers and sold at $1.125. ;)

JJ said...

Wow..... 恭喜 AK & friends !

So happy for all...

Happy Huating;)

Sanguine said...

thanks for the updates over here

was a bit late to realise that trading had restarted but managed to exited all my position as well.

wow this incident was a great learning lesson.

no more S-chips for me though in future. my heart cannot take it...

AK71 said...

Hi JJ,

Thank you. You have a long position in this too? :)

AK71 said...

Hi Sanguine,

My heart cannot take too much excitement these days either. ;p

Well, we came out of this intact. I think a little treat for myself is in order. :D

Solace said...

Hi AK,

What a great turn of event!!

congrats :)

AK71 said...

Hi Solace,

Thanks. :)

I think my Guardian Angel was working overtime. ;p

sillyinvestor said...

Glauscus hit back
https://glaucusresearch.com/wp-content/uploads/downloads/2013/09/GlaucusResearch-Rebuttal_to_China_Minzhong-SGX_K2N-BBerg_MINZ_SP-Strong_Sell_September_2_2013.pdf

But this time round, it will hit a wall of money by Indo-food. It's going to be futile, if someone want to buy a rotten apple for $1000, it's worth $1000, until that buyer thinks otherwise, no need to talk about the apple anymore.

AK71 said...

Hi Mike,

Oh, this is a better link than the one provided by someone else earlier. More direct. ;)

If the people at Glaucus Research have yet to close their short position, too bad for them. :)

JJ said...

No I don't have this, only trade in and out many times, still can't get a better price to long. Last week drop too fast then halted.

Last week must be a tough week for some of them.

Happy for you all mah...

AK71 said...

Hi JJ,

So, you made money from trading China Minzhong's stock before. Congrats! :D

Well, you were spared some serious agony last week. That is a good thing too. :)

Chris said...

Hi AK,
Congrats! Can't believe how this event turned out this way but happy for you. Balls of steel finally is well rewarded!
Chris

AK71 said...

Hi Chris,

Thanks. :)

I wonder why people say "balls of steel". Sounds really heavy. Hard work. -.-"

What about female investors? Hmmm... "boobs of steel"? ;p

Dividend Warrior said...

Hi AK,

Congrats!

Your faith in CMZ has paid off spectacularly. ^^

CS said...

Hi AK, I am happy that most of us have avoided a near disaster caused by Glaucus. If they are in trouble now, I will be happier. Now Indofood has offered S$1.12 a share. If Indofood finally has a majority control of CMZ and CMZ is not delisted, do you think it's shares should be valued even higher than S$1.12? The point I am trying to make is whether it is a good price to sell our shares at S$1.12. You may want to give your view on this.
Thanks very much for all the good discussions on this blog.
CS

AK71 said...

Hi DW,

Thanks. I like to think that there are gems amongst S-chips although I quite understand that this is not conventional wisdom. :)

This is the same philosophy I had when I was loading up on some S-REITs a few years ago when many wouldn't touch them with a 5 feet pole.

However, we can only analyse so much. Luck definitely plays a part in how things turn out too since our knowledge is imperfect.

AK71 said...

Hi CS,

As a bona fide business, I believe that China Minzhong's stock should be worth a lot more.

You might remember that its IPO price implied a PER of about 9x. Today, at $1.12 offered by Indofood, PER is at about 4x. If we value China Minzhong at a PER of 8x, it would price its shares at $2.24 a piece today.

Anyway, if we are more conservative, we can look at its book value. It has a NAV/share of some $1.40. So, at $1.12, Indofood is still getting a nice 20% discount to NAV.

Of course, if the books cannot be relied on, then, all these are out the window.

I have closed my long position today at $1.125. My weak heart needs a rest. ;)

Tien Song Chuan said...

From GIC to Infofood, it is still the same story: "investors" are still gambling on the actions and words of big buyers, and not fundamental analysis. At least the short-sellers are doing just that.

AK71 said...

Hi Tien,

I do agree that my FA needs some brushing up. :(

AhJohn said...

Congrats AK! Just few minutes before halt.
Btw, your blog maybe even useful than this:
http://www.millionaireinvestor.com/author/kenchee/

Of coz, the guy is doing well too.

AK71 said...

Hi Ah John,

Thanks for the encouragement. If my blog has been helpful in any way to anyone, I am happy. :)

I did help to promote the Value Investing Summit organised by Ken and company in January this year. I think many readers went for the event too. :)

I have not been to one of Ken's MIP sessions though. I only know MIP is rather pricey. You went for one? Good?

tostubi said...

This is worse than the hollywood movies. down 50% up 110%.

my stop loss kicked in when it dropped 50% and i've lost 40% of investment..
:```(((

AhJohn said...

No, I just register for a free one. I do think everyone must find his own way, nothing is sure win or copy able.

AhJohn said...

Strange, I remembered 1cent dividend, but can't find it anymore, or I just overlook?
If there is 1cent dividend, then 1.13 is reasonable.

Btw, do need to take action to accept the 1.12 offer?

AK71 said...

Hi tostubi,

I am so sorry to hear of your loss. :(

Goh Eng Yeow wrote a very good article in The Straits Times today. It is titled "Time to rein in errant short sellers" and is found on pages B9 and B12.

(Glaucus) made no secret that it has shorted China Minzhong and stood to make a significant gain if the firm's share price fell.

Even the language it used in its report was designed to spread panic, declaring China Minzhong to be worthless...

Given the media hype over Glaucus' success in bringing down Hong Kong listed China Metals Recycling, it is difficult to blame investors for getting caught up in a wave of fear.

They fell for Glaucus' ploy and, in a panic, sent China Minzhong stock crashing... But the fact is that Glaucus has a chequered record. US-listed China real estate website play SouFun Holdings, which it attacked in April, has since doubled in price.


Goh also shared that "short selling funds operate out of essentially shell companies with few assets worth seizing."

So, suing a short seller like Glaucus might not be meaningful.

Glaucus, like all short sellers, aim to fatten their bank accounts while hurting mostly retail investors like you and me in the process.

I don't believe the statement found on their website. Do you believe this?

We founded Glaucus Research Group California, LLC, to help capital markets investors navigate treacherous financial waters in search of great investment opportunities.

AK71 said...

Hi Ah John,

I agree totally. One size fits all? For T-shirts, perhaps. ;)

AK71 said...

Hi Ah John,

Yup, China Minzhong declared a 1c dividend per share.

Selling shares in the open market now will entail some costs. Accepting Indofood's offer (and shareholders should get a letter 2 to 3 weeks from now) will not, I believe. :)

For me, I sold when the trading halt was lifted. The whole matter dealt me some mental distress and closure is good for me. Bygones.

So, you have a long position here as well?

Tien Song Chuan said...

Prices rise has nothing to do with the intrinsic worth of the asset, but more to do with manipulation by giant players. It is the income generating potential of an asset that counts.
Look at this 12 million dollar coffee shop. Anyone who knows a bit of fundamental analysis knows that it is not worth it, yet price still rises. Remember the tulip?
http://www.tnp.sg/content/why-pay-12-million-quiet-coffee-shop
Lets wait for someone to short this coffee-shop.

Kevin Yap said...

Total volume traded: 174 mil
Total no. of shares acquired by Indofood: 69 mil

Sure, the same shares can be sold and re-sold multiple times a day but not to this extent right. It appears that someone else has a keen interest on CMZ

AK71 said...

Hi Tien,

What, however, is the instrinsic value? Quite subjective, isn't it? I recently blogged about this too:
When to BUY, HOLD or SELL (Part 2)

AK71 said...

Hi Kevin,

With price range so tight, I think the chances of churning is low. More likely, there is some short covering but, mostly, we are probably seeing shareholders letting go since it is unlikely that share price will go much higher than $1.12 for a while.

Apparently, Indofood holds more than 44% of all the issued shares in China Minzhong by now.

chrisyoong said...

Agree. Selling to Indofoods is more preferred at 1.12 than selling in the open market. However, if the short sellers still need to cover their short positions, then long position holders will have the upper hand if the exchange forces a buy-in to cover the short.

sgdigital said...

Regarding the dividend question - The offer by Indofood for $1.12 is inclusive of dividend, once XD, the offer is $1.11

Thank goodness for my knight in shining white armor. I will be buying lots of Indofood mee henceforth in my own effort to give thanks :)

AK71 said...

Hi Chris,

I would imagine that most short positions would have bitten the bullet and covered by now. Currently, there is no chance of price falling below $1.12. It is foolhardy to wait. :)

AK71 said...

Hi sgdigital,

Knight in armour made of instant noodles is even more powerful! ;p

For me, selling at $1.125 also made sense because I make more money net of costs compared to selling at $1.12 to Indofood. :)

Ivanp said...

Hi AK,

I don't think one can compare your blog to Ken's course(s) which are meant to be for beginners, high level FA (he is not a believer of TA) and each is rather focused in nature (e.g. equity, REITS).

The information provided in your blog is more comprehensive, in depth, more profound and imho worth much much more. I believe one need not pay the money to learn those stuff but then again, there are people who are conditioned to think they need to attend a "formal" course to learn anything and be part of a "network" to feel safe.

Regards,
ivan

AK71 said...

Hi Ivan,

I know people, including a good friend, who have spent thousands of dollars attending courses (both FA and TA).

When I asked my friend why he would spend thousands of dollars on courses, he told me that he couldn't do self learning through reading books. There are probably many people like him. They need to be engaged in a classroom environment to learn.

I am definitely not against education but I am always looking for value for money. I mean I can afford $2k or $3k for a course but it is not a question of affordability, is it? By this, I am not passing judgement on any commercially available courses out there, mind you. ;)

Thank you for the glowing assessment of my blog but I cannot take all the credit. My blog is blessed to have selfless sharing from many readers too. You guys are my "network" and I am very grateful. :)

Please remember that I am largely self taught and there is still very much that I don't know. I make (many) mistakes too. In the medical field, I would be called a quack doctor. For sure, I still have much to learn. :)

sgdigital said...

I don't quite understand why SGX don't have circuit breakers for individual stocks? They allow a stock to just crash 50% in just 2h is shocking. Honestly, extreme price movement usually only hurts the retail investors - This means us!

AK71 said...

Hi sgdigital,

Indeed, quite a few people have asked that same question. I wonder if this is something SGX has thought of doing before.

Cory said...

People who set "auto-sale" when price drop to certain limit will definitely be badly hit in this situation.

In Taiwan, 7% limits each day. Once hit, trading halt.

AK71 said...

Hi Cory,

What is your take on the Taiwanese system? A good thing, you reckon?

AK71 said...

Singapore-listed China Minzhong said the supplemental report from Glaucus Research was “lacking substance and self-serving”, adding that no fresh allegations were raised. Separately, Indonesian food company PT Indofood Sukses Makmur, which had launched an offer for Minzhong, said the vegetable producer complements its business and “various opportunities exist for strategic integration and synergies”. These include industrialised farming in Indonesia using both their expertise and resources, as well as the potential sale and distribution of Minzhong produce by tapping Indofood’s extensive network in Indonesia.

REUTERS, 4 Sep 2013.

d34af78e-43ac-11e2-aa43-000bcdcb5194 said...

Hi AK,

I'm glad everything turned out OK. Seems like investing is not for the fainted hearted!

Tree

AK71 said...

Hi Tree,

For sure. -.-"

We can only hope that our FA and TA is up to scratch.

I have been reading up a bit more on financial fraud, starting with what is readily available online. It is a jungle out there.

AK71 said...

Glaucus Supplemental Report lacking substance and self-serving!

A very good read. Could there be another opportunity in the future to invest in China Minzhong at under a dollar a share? ;p

Source:
http://infopub.sgx.com/FileOpen/CMZ_Response_3Sep2013.ashx?App=Announcement&FileID=255103

AK71 said...

PT Indofood Sukses Makmur now owns more than half of China Minzhong, turning its offer for the Singapore-listed vegetable supplier unconditional.

- REUTERS

CS said...

Understand that Moody's is about to review and upgrade the rating for Minzhong:

"Moody's: Moody's reviews China Minzhong's Ba3 rating for upgrade
Global Credit Research - 04 Sep 2013 Hong Kong, September 04, 2013 --

Moody's Investors Service has placed China Minzhong Food Corporation Ltd's Ba3 corporate family rating on review for upgrade.
RATINGS RATIONALE:
The rating action is in response to an announcement on 4 September 2013 that PT Indofood Sukses Makmur Tbk (unrated) had acquired a stake of more than 50% in China Minzhong, via its takeover offer for all outstanding shares of China Minzhong at a price of SGD1.12 per share. The offer became unconditional.
"Majority ownership by a much larger company with a significantly stronger credit profile means that a degree of implicit support will likely be factored into China Minzhong's rating," says Lina Choi, a Moody's Vice President and Senior Analyst."

CS

AK71 said...

Hi CS,

Very fortunate the way things have turned out. :)

coven said...

Hi AK

with the china minzhong saga almost over. Any thoughts on Indofood ?

Thanks, Coven

AK71 said...

Hi coven,

Nope, no thoughts on Indofood. :)

I am taking it easy for now and will only look at stocks which I am already vested in. It has been an eventful year thus far.

Tommy C said...

Hi Ak,

Most of you sold and took Indo's offer? What if we don't sell it and it's privatised?

e165f028-3576-11e3-aae6-000bcdcb5194 said...

Hi AK,

May I know if it's advisable to tuen down Indo's offer? How about you?

AK71 said...

Hi Tommy C and Tree,

I sold my entire stake at $1.125 in the open market when the stock resumed trading. :)

AK71 said...

PT Indofood Sukses Makmur intends to maintain the listing status of China Minzhong on the Singapore Exchange.


This is despite China Minzhong's public float dropping to 4.3 per cent - below the 10-per cent minimum requirement to maintain its listing status.


In a filing with the Singapore Exchange, China Minzhong said Indofood had acquired 89.03 per cent of its total issued shares as at the close of its offer last Friday.


Indofood will be "evaluating various options to restore the free float of the company."


http://www.channelnewsasia.com/news/business/pt-indofood-to-maintain/856072.html

Elaine K said...

Hi AK and fellow investors who took up the Indofood offer

May I know when will the money from the sale be received?

I assume it will coming direct from Indofood, does it mean it will come in the form of a cheque?

Thanks!!

AK71 said...

Hi Elaine,

I think the money should be directly credited into your designated bank account with the CDP.

You might want to check with your broker to be sure.

I sold mine in the open market at $1.125 a share. :)

Nightmare_Angel said...

Hi AK,

What's your take on China Minzhong stock after the majority stakeholder decides to continue floating the stock. Stock is currently trading at $0.895 pretty huge discount to the offer price of $1.12 I must say. Even more when compared to NAV.

Regards
Qin Liang

AK71 said...

Hi Qin Liang,

Since fully divesting my stake, I have not looked at China Minzhong. So, I am afraid I won't be able to make any meaningful comment here. :(

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