Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
Share holders shouldn’t have anything to worry as the company figures and progress is in a very good state, they are making substantial profits and orders are very strong. At the end of the day the suspension was due to the auditors doing their job which is asking why millions were spent for no value to share holders and have asked for a detailed explanation from the BOD. If anything it clarifies to the senior management (and major shareholders) they are accountable to every shareholder not just themselves. Concerns are raised because the IPO share price tanked and they want to know why after they paid consultants to deliver the opposite. I see several major issues.
Massive sell of on the first day of HK trading
Lack of any communication through the year
Genuine share price not achieved based on performance
Millions spent on consultants
The auditors want answers from the company as they are accountable to the exchange and share holders. So they have been asked to explain and fix the problem as the company management does not deliver value to its holders. If the major shareholders (BOD) want to run it for themselves they should buy back all the shares and take it private, if not they are accountable to everyone.
Several outcomes could arise.
Company goes private, they’d have to buy up all remaining shares, they’d have to make an offer above the IPO as they valued the company at that value only a year ago.
The investigation fines the BOD and consultants for miss conduct in spending share holders money. Starts trading again and they learn a valuable lesson about being accountable.
Third party looks to do a takeover and makes an offer which again would need to be fair and realistic. Would be at the IPO price range as a minimum.
Bottom line is for all the above is that in open trading as soon as a few buys come in the price leaps in value very very quickly so no one can get many shares with out the price jumping up very quickly. The problem is trust at the moment in the BOD updating shareholders to sustain a long term investment base from PIs or institutions. I think this will be picked up by the audit and the BOD will be told to act correctly moving forward. I can only see the SP moving upwards as profits and revenue are so strong.
Company is doing really well but OMG their communications are just incredible inept, They wait a whole year for the one day they are forced to deliver the good news after absolute silence and the day the blockbuster results land we are suspended. You couldn't make this up if you tried, the BOD must be ashamed of their communications as this should be on its way to $2HK by now and we are at a price no better than AIM achieved. The auditors and the BOD should be forcing the consultants to hand back the money they spent as they haven't achieved anything like the value they should have.
Basically the cost of the move to the HKEX dented the profits slightly but revenues are up, the order book backlog is strong and revenues are up. Based on it being a world wide pandemic they are very good and I can understand why they are being asked questions about the cost of the consultants to make the move to the HKEX. Two thirds of the IPO money has been spent with the rest in the bank and no mention yet of any dividend. The results have been delivered as in-audited during the suspension so not impacting the SP as no-one can trade shares. Will the very solid and positive results be forgotten about by the time we are trading again is the big question and will the SP rise which it should based on the numbers. Just seems to be another communication disaster based on very positive news. SP is even more undervalued now as it should be over $1HK easily but yet no where close.
https://tradingeconomics.com/commodity/ethanol#:~:text=Ethanol%20is%20expected%20to%20trade,0.79%20in%2012%20months%20time.
Assuming the results are all good and their is no reason to suspect at this stage they are anything short of current expectations the BOD have to be on notice to boost the SP by the HKEX. This was a flagship offering and they will be looking closely at future transitions from London, US and European exchanges to theirs and currently the CNEL BOD have let them down badly. Lets hope they have been given a kick up the butt and told to get their house in order ASAP otherwise they will be watched very closely IMO. Let's hope when this comes out the gates again their is a clear plan, good results and ongoing commitment to the SP and PI's
They are probably querying the value as the SP nose dived so the advice didn't deliver value to the company or investors, good for them in querying the amount and value for money. Maybe the BOD will take note that they have to act in more than self interest.
The auditors what to know what happened, as to why they got consultants in for small fortune and the SP tanked on the opening bell on the IPO I’m sure. I’m not sure if the mass sell down on day one was the loan shares that were dumped immediately without explanation but that doesn’t look good for the BOD or consultants. Someone made a lot of money at the starting bell and it wasn’t PI’s or new investors as they didn’t have certificates. If I was auditing the accounts I’d want to know why £2M in consultants fees delivered such a poor result in the end result. Sounds like they want the answers we’ve been waiting a long time for. Annoying we have to wait yet again for what should be the one day we should be able to guarantee news, the BOD even messed that up, way to go!
I’m guessing we will have to wait until next week to find out the results, the current SP reflects the silence until now from the BOD and a massive hole in the companies communications to investors. We will find out soon enough what the real score is as I think apart from a few die hard UK PI’s we are in the hands on the company owners and Chinese investors now as they have the shares not us. They need to get this SP above $1 HK quickly otherwise the IPO value is going to be viewed as very very disappointing. Good Luck Everyone as it’s been a very bit of a bumpy ride until now but hopefully we are at our destination soon and can enjoy the sun after a tough trip.
Ethanol Prices are still rising so the futures market should be driving investment
https://tradingeconomics.com/commodity/ethanol#:~:text=Ethanol%20is%20expected%20to%20trade,0.79%20in%2012%20months%20time.
Hopefully if your in or out we will all be successful and lucky in our investments in the future. I still believe it will come good but the company needs to push its success to the market to deliver on the SP.
It genuinely takes an incredibly special form of incompetence to trash the SP by the BOD on a day they should be releasing share boosting results. Way to go team as you couldn’t make this up if you tried.
I don't disagree that the BOD have been shocking with the marketing and PI updates, which in todays modern world is just plain stupid as reputation and profile is worth more than financials nowadays. That said up till now they have delivered a very strong financial and sales performance which makes this even more crazy that they can't seem to lift the profile of the company and ultimately the SP.
I guess we are all about to find out where we are very shortly, the only things of note recently to give me very positive vibes are:
1: No News means their is no bad news hopefully as they would be obliged to give a profit warning
2: Richard Bennett said n a tweet recently everything was still on track
3: They are discussing a dividend which would not be on the table if they were going backwards
Just my personal feelings but everything will become clear by the end of the week as to either a bid re-rate on the cards or nothing as I cannot believe their is any further downside to the SP as its at rock bottom already.
https://ipad.fas.usda.gov/cropexplorer/pecad_stories.aspx?regionid=che&ftype=prodbriefs#:~:text=USDA%20estimates%20China%202020%2F21,2%20percent%20from%20last%20year.
Oct 9 2020 | China Corn: Production Remains Unchanged from Last Month
USDA estimates China 2020/21 corn production at 260.0 million metric tons (mmt), down 0.78 million or less than 1 percent from last year and down less than 1 percent from the 5-year average of 261.1 mmt. Yield is estimated at 6.19 metric tons per hectare, down 2 percent from last year. Area is estimated at 42 million hectares, up approximately 0.7 million or 1.7 percent from last year. In recent years, there has been a marginal increase of corn area primarily due to changes in agricultural policy.
Its an odd feeling as in the last week we have lost 25% on the SP value but yet I haven't been personally more optimistic about the Value here for ages. It's going to ping upwards big time soon and to be honest the BOD have backed themselves into a corner, with no updates they have let the SP slide down ad really have no choice but to boost it with a dividend now due to their lack of news. So in the next few weeks we should see this bounce back big time IMO with the results to come and the board meeting update.
Obviously over the last week we have drifted down and not up but Ethanol prices are still surging so business models are strengthening in the market for the product as a whole at the moment. Bring on the results and we should see some real value here.
https://tradingeconomics.com/commodity/ethanol#:~:text=Ethanol%20is%20expected%20to%20trade,0.79%20in%2012%20months%20time.
https://tradingeconomics.com/commodity/ethanol#:~:text=Ethanol%20is%20expected%20to%20trade,0.79%20in%2012%20months%20time.
That might be what it's showing as value according to the current SP, but a couple of million share buys and this is up 1-2p so if you actually wanted to buy any percentage of the company the cost would be above a $1 pretty quickly. It is undervalued but equally the SP moves up so quickly it could recover rapidly if that value is recognised by new investors.
Our company successfully obtained the renewal of ISO9001:2015
http://www.zkty.com.cn/a/202102/520.html
They must have good process management even if their Marketing department is lacking in updates.
That didn’t go to plan ..........