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terrible imv...Non Chinese oversight was only basis for progress....the track record of Chinese stocks on AIM is just staggeringly bad ...and the simplest explanation fits best: we are a long way away, cannot speak/read Mandarin...the worst possible basis for investing
UK NED. Reason stated - disagreement on divi policy between NED and ED's. It appears NED wanted divi paid. He must have had access to bank a/c statements, and able to verify figures, and argued that divi ought to be paid. Other scenario is that he knows it's false accounting, and jumped ship, and agreed the rns for golden handshake!!! Never know. Still an intriguing share.
Good luck to you testpack. Looks grim to me but you never know.
The reason as I understand it, is that the Chinese economy was faltering, revenue was down, profit was down, and a prudent ( a great Gordon Brown saying) decision was taken to preserve cash. I agree though, that with an alleged £40M in bank, a couple of mill on divi is neither here or there. I doubt if BOD actively follow rules on trading in their own shares, and using 3rd parties, some handsome money can be made by selling high and buying low. Of course, this is only a scenario but I will be watching out for decent buys in this share. On a footnote, if it is a scam, then Zhang has had ample opportunity to offload a few of his near 70% holding at significant premiums to the present price. I do not think the market would see this as a 'sell out', but rather to increase the share ownership and liquidity of the company. As in all things in life - time will tell. I would not invest money in this share which I am not prepared to lose.
There was no good reason not to pay a divi this time, why would they pay a divi next time?
Pasted fro rns Group revenues decreased marginally by 6% to RMB1,016 million (2013: RMB1,083 million) · Gross profit decreased marginally by 6% to RMB376 million (2013: RMB402 million) · Gross margin was maintained at 37% · EBIT* decreased by RMB68.9 million to RMB235.2 million (2013: RMB304.1 million) · Net profit after tax decreased by RMB52.5 million to RMB173.7 million resulting in a margin of 17.1% (2013: 20.9%) · Footwear business revenues increased to RMB345 million (2013: RMB337 million) · Camkids remains cash generative with year-end net cash of RMB401 million (2013: RMB313 million)' £1 = 10RMB U say these results are not good - u need to do an accounting course. lol As I ( and jolly) have stated many times before, it's all about believability. If it had paid a 2p divi, sp would now be 40p+. It will, in MHO pay a divi in interims, and will be a 30p+ sp again. How low will it go - never 5p or 10p, but maybe 15p. I will, as in the past, make a decent investment in the next few weeks, months, if I can guage bottom of market.
Not 15p not 10p it could be 5p
The dividend cut is not a huge surprise, as the warning signs were there. The 2014 interim had already been reduced compared to the 2013 interim, and the scrip option was bigger than the cash option. I said this here in December. There is a real business and a brand called Camkids, but the shares have an ever higher probability of being worth zero. Look what happened to Sorbic recently (SORB).
another horror show.. ..may buy back here c10p...cos the explanation for no dividend here is marginally less weak than over there ...but would be v risky punt lol
Always reminds me of an old Quo song this one.
Crikey ... just seen JQW SP has jumped from 10.5p to 12p to buy in the last hour. Similar spike as here.
The next 'interesting' Chinese company to report is JQW - finals Thurs 30 April. Like Camkids anything can happen! In Feb gave upbeat trading statement with revenues ahead albeit noting competitive pricing pressure on margins. Cash pile growing 0.5p cash div paid last year and a 5p special div + 0.2p div at the interims in Sept. Like camkids the SP is starting to move in anticipation of results. Could see similar spike. Will it be another horror show or will they come out with another special div ?? WARNING!!! DYOR !!!
Hi Jolly, "Red Flag" LoL :-D
I'll give u a D- for spelling, and an A+ for research. lol Yes, def insider dealing. Zhang cant sell his shares in the proper time frame without causing a furore. So, I suggest he uses 3rd parties to make some pocket money. As said previously. it would be no surprise to see the 2p divi re-instated in the next few days, with a 50% upside.
good sentiments... ...I can see both sides of the div issue: the cash drain in 2nd half was not encouraging... ...BUT overwhelmingly the stopping of the div strikes me as a deeply red flag (which is kinda appropriate for a company based in China)
Not in myself but never good to see fellow investors get shafted... 'Hope yee made a few quid on the recent rally & baled out safely. Best regards, Blue
Did anyone else spot the half a million shares sold 2 days ago then repurchased after the results today? Neither were uncrossing trades. Only a handful of people hold that many shares most of whom, if not all, are privy to inside knowledge.
yes tks...luckily happened to be watching at time...
Forgot to say that it would be no surprise if a rns was issued tomorrow to re-instate the divi. lol.
If the company is going to trade at 26p with over 40 million in the bank they might at well shut up shop and give us all 56p from cash plus whatever the business can be sold for, seems the fastest way for shareholder return to me.
This would be a fair and reasonable explanation for the vast majority of listed companies who are experiencing a downturn in T/O and EBITDA. However, the vast majority of companies would not have 26X more reported cash in the bank than a 2p final divi would have cost. ( £40m & £1.5M). The timing of the rns was also a surprise, not being 'out of trading hours). I am sure there are investors here who checked rns's this am before going to work, and will be selling out when they read the poor news this evening. It can't be another Naibu. The company would find itself in all kind of legal prosecutions in China if a fraud was being perpetrated. The A/C's as presented show a robust company, with a platform for excellent growth when the Chinese economy recovers. We know that growth in China has slowed, but the Shanghai S E is v bullish. I sold half t'other day at 38p for a small profit, and other half this am at 30p for a loss. No doubt T Winnifrith will be giving it all in the near future on 'told u so'. I hope that Jolly got out at about the 30p level. I will get back in for more excitement when interim divi due. I am confident it will pay interim div in 6 months time, and sp returns to 35p.
The cash position alone is worth 56.6p per share, how ridiculous is this pricing unless they are lying about the cash position, the company comes with the cash for free, something is not right, on this basis one could buy the whole company for twice the closing share price today and still be quids in.
"The Directors believe that it is in the best interests of the Company to conserve its cash during this period and have adopted a conservative approach to cash management. As part of this, all of the Company's Directors, supervisory level and above employees have agreed to reductions in their salaries. The Board recognises the importance of a dividend to its shareholders and intends to resume the payment of a regular dividend as and when market conditions improve."
Very bad news, no explanation.
They have £44 million in cash but can't give out 10% of that as a divi to shareholders who are 75% down since IPO. Do me a favour.