Member Info for bumpylane

I went to the AGM. No Chinese management there. Just the NEDs Jonathan Quirck and Richard Sweet. Quirck chaired. Not that many investors but we haf a useful discussion about the company. An Irish investor who'd come over specially asked a lot of detailed questions about the company's operations, and about current trading and margins. NEDs said they couldn't comment as the company was in closed period. This investor was in the fish business, and definitely knew a lot about AFG's ops/markets. He thought the debtors figure was high.. I criticised the corporate governance - in particular why was there no new CFO appointed after 6 months? Lots of blustering and apologising in explanation. They said they had been trying hard, but getting the right candidate v difficult, bla bla. But suggested they were almost there. I said that no CFO in place put out a terrible message to investors. They agreed. I asked why no Chinese board members present. They said they'd advised them not come now. Better to come later this year or next and attempt a relaunch when market is more favourable, cfo appointment made, Brexit turmoil diminished.I think that's quite sensible. I asked about board's commitment to London listing. They said company was committed to London listing. I said I appreciated NED j Quirck buying shares - £40k's worth according to my calcs. He said he'd bought them because he thinks they will rise, not from duty. He said the value of the listing to AFG is because its suppliers are mainly outside China, and it gives the credibility with these suppliers. I'm reasonably encouraged by this meeting. If this company can remain listed it will do well.

Very small buys are pushing up the price. The market makers seem to have very little stock on hand and keep pushing up the offer to deter buyers. An interesting situation.

I think there must have been a few people sitting on the sidelines and watching. When they saw the share price rising they decided to buy a few.

A really dramatic movement today. Hopefully this is the beginning of a re-priicing that will take this back to somewhere around the 20p-25p level, market cap about £25m. That would be a P/E of about 1, which would be a good start! If it can hold that for a few months, it can attempt to get back to its IPO level (about 60p?).

Hinkais - I think that just the one high-risk fish stock is enough for me at the moment! You could be right that AFG could announce the appointment of a new CFO at the AGM on the 19th..

simonm - I see a trade for 125k shares yesterday at 8.25p, which must be you. Hopefully our courage here will be rewarded. It's an interesting thought that the share price could rise 10x and the P/E would only be 5. It's also interesting that the full year dividend (although about 18%) only distributes about a tenth of the net profit.

Nice to see a rise today. Spread now 7 to 9. Let's hope this is the beginning of a return to a more sensible price.

Hinkais - this final dividend is in fact about 10%, but I agree the dividends for the whole year are about 20% of the current share price. No transactions at all today, which is hardly surprising as there is a 33% spread between the bid (6p) and the offer (8p). Who is going to trade with that kind of spread? that is still a I called a broker, who called a market maker. He could sell at 6.75p, but could only buy at 7.95p. But that's still a spread of about 18%. Are you going toe AGM on July 20th?

Hinkais - this final dividend is in fact about 10%, but I agree the dividends for the whole year are about 20% of the current share price. No transactions at all today, which is hardly surprising as there is a 33% spread between the bid (6p) and the offer (8p). Who is going to trade with that kind of spread? that is still a I called a broker, who called a market maker. He could sell at 6.75p, but could only buy at 7.95p. But that's still a spread of about 18%.

Hinkais - sorry, 1200 tonnes. Got the decimal place in the wrong place. You seem to know quite a lot about the fishing industry, which is useful. I have read the latest report. There's not a lot of information about the shareholders (apart from the CEO, who owns 45%). Do you know if there has been much insider selling? What has taken the share price from 60p to 6p? Have these existing shareholders been adding? If the offer price falls I will buy more. RE this thread, it might be a good idea to reply on the same thread rather than always starting a new thread.

Two Scottish suppliers of mackerel - Pelagic and Lunar. about 100 tonnes total. Both based in Peterhead and both genuine companies, as you say, with websites etc. Re the shareholders. The CEO has 45%. Do you know anything about the others?

Hi Hinkais - I agree that the supply contract for mackerel with Northbay Pelagic in Peterhead gives AFG some credibility here in the UK. AFG seems like a very solid business. I would like to know a bit more about Wang Shaodong (Charman and Li Xianzhi (Chief Exec) and about the shareholder base. Please consider adding some punctuation to your posts. Currently they are difficult to read and make you seem only semi-literate. Very off-putting for potential investors who might be reading this thread. Doesn't take much longer to add a few full stops and commas.

Hinkais - why do feel that the company is determined to make the AIM listing work? I'm not saying it isn't, I'm just trying to work out whether this is your hunch of something you've established by talking to someone close to the company. Do you think Brexit has reduced the company's commitment to the UK, maybe because of perceived reduction in the UK's standing in the world, etc? This commitment to a UK listing is really important because the company are going to need a lot of patience here. However attractive the investment here looks with AFG, it's going to take a long time to convince private investors to dabble in anything small and Chinese. And no fund manager is going to risk his job buying AFG, for the moment anyway. Personally I think it's very interesting. A classic case of asymmetric risk. Upside is x 5, downside is x1. The dividend at almost 20% covers the loss on the spread. Currently totally unloved, which is usually the right moment to buy any share. Punctuation is not your strong point Hinkais. Definitely time to consider using to use a few more commas and full stops.

Looks very interesting. It could easily bounce strongly from here. The NED buying is very encouraging. The p.e. Is 0.5 and the market cap is 10% of net assets. Some questions: - do we know why the CFO resigned in Feb? Anything sinister in this? - do we know anything about the Chairman and CEO? - Is there a controlling shareholder?

The website seems to be online and functioning normally, but we've had no RNS to say that AIC have given the green light. SO the current situation is all a bit of a mystery. If the AIC refuse to give JQW.com a licence to operate I suppose the website will have to close and JQW will become a cash shell. At 30/6/15 there was £45m in cash on the balance sheet. That has probably reduced a bit since then, but let's say there's still £40m on the balance sheet (approx 20p per share). JQW will almost certainly delist in early January. We will then become shareholders in an unlisted Jersey company controlled by the Chairman (Cai Yonge) and his family. I think our only hope of getting any money back is that he decides to treat minority shareholders decently (e.g., by making a tender offer for their shares).

That's good to hear

Delisting seems inevitable here, thanks to Cairn behaving in a very selfish and irresponsible way. As JQW's top holding company is in Jersey it may still be possible to salvage something from this mess. If you would like to be part of a PI action group, email me at jqwgroup@gmail.com

I'm sure you're right there. Absolutely ho hope of re-listing at this point. The company would have to (1) sort the issue in China with the local AIC office, whatever it is (2) recruit a new CFO and (3) persuade new Nomad to take them on. All too difficult in 30 days, of which about 10 days is dead time. Perhaps the board will throw in the towel on the business and just wind it up and distribute the cash.

I don't know him, so can hardly call the JQW Non-exec director a friend. But I had interesting email exchange with him and I thought it was worth passing on that he feels there is still a slim hope of re-listing. Very slim, I think. The non-execs should have owned shares here, I agree

I've had an interesting email exchange with a non-exec director. He seems reasonably hopeful that the AIC situation will be be sorted out soon and thinks that the company can find a new nomad. Seems a very tall order to me but lets hope he's right. Cairn seems to have taken everyone by surprise by suddenly resigning.