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News out this morning in Hong Kong media regarding the Nina Wang holding. Tony Chan (Raymond Chu's friend) has lost the case and Chinachem have won. This moves all those RCG shares out of the "friends of RCG" hands and into Chinachem hands, which may mean they will now sell the complete holding of free shares they have inherited and get the cash. RCG down in Hang Seng trading on the news. Could see a sell off on London too.

Cement shares rising in Hong Kong. Must be remembered that cement companies on the Hang Seng trade on PER's in the teen levels. WCC will dual list on the Hang Seng soon, and yet is on a forecast PER of less than 5 going forward. And remember, results should be out on WCC before mid-March IMO. http://www.jlmpacificepoch.com/newsstories?id=1622122_0_5_0_M ..............Shares of construction-related companies rose on Monday, following a proposal in the No. 1 document, China's first policy document in 2010, to increase rural housing construction, provide building materials to rural areas and support rural residents who construct their own homes, reports Xinhua News Agency. China National Building Material (3323.HK) shot up 11.13%, Anhui Conch Cement Co (914.HK, 600585.SH) gained 9.3%, Asia Cement (China) Holdings (743.HK) increased 6.65%, and China Resources Cement (1313.HK) climbed 3.04%......... .

The recent drop to 400p levels has encouraged me to make a top up here. The pending HK listing could well see this one move up, and my target is a price between 400p and 600p on listing, so as its at the bottom of my target range with only possible upside now I have got some more. Other people think 800p or more is the potential on Hong Kong listing, so I would love to be wrong with my 600p top guesstimate. Anyway, for a relatively risk free ride on the potential for a re-rating on Hong Kong listing in the coming 4 months, WCC is attractive IMV now.

http://www.prlog.org/10475702-successful-research-programme-allows-high-performance-brake-discs-to-be-manufactured-at-lower-cost.html PR Log (Press Release) – Jan 05, 2010 – Carbon composite brake discs provide substantial improvements in both performance and weight compared with traditional iron discs, but the cost of such systems has so far made them largely unaffordable in the majority of applications (including commercial vehicles, trains, industrial equipment and all but the most exotic cars) where their performance characteristics could bring substantial benefits. A UK-based consortium of specialist companies is addressing this challenge by developing new techniques that will allow carbon discs to be made from manufacturing scrap, providing a lower cost, more environmentally friendly solution to very high braking performance. “Potential applications are wide ranging,” says Federal-Mogul technical manager David Holme, based at the company’s Friction Technology Centre nearDerby in the UK. “As well as demand for reduced weight to cut CO2 emissions in the automotive industry, there is a need for lighter weight, higher performance braking systems in the rail industry and for brakes offering greater consistency across a range of process industries. If we can match or exceed the performance of today’s best systems, but at a much lower cost, the benefits will be substantial.” The project, called Rebrake, covers the development of brake discs made from recycled carbon and the development by Federal-Mogul of compatible pad materials. It is supported by investment from the government-backed Technology Strategy Board. “The programme has recently passed a major gateway by successfully manufacturing small disc samples that prove the concept, so we are already moving on to the manufacture and testing of full-scale prototypes,” says Holme. “These will be tested on dynamometers and cars using the pad formulations developed by Federal-Mogul. Following further refinement, the new system will be benchmarked against current best-in-class products early in 2010." Other partners in the project are Surface Transforms (a manufacturer of advanced ceramic discs); AP Racing (a specialist in very high performance disc brake systems); Faiveley Transport (a rail industry brake technology specialist); Wichita Clutch (industrial applications brake and clutch specialist); Advanced Composites Group (the main advisor and provider of carbon scrap) and Meggitt Aircraft Braking Systems (bringing substantial experience in carbon applications for aircraft braking). The academic partner is Loughborough University, which is responsible for much of the early development work. Applications outside the automotive industry Rail is typical of many industries in which conventional iron rotor discs are reaching the limit of their performance. There ar

The company openly says cash is tight and so cuts a small interim dividend to save cash, yet the figures released show cash at 32m (but with borrowings up to record levels). The Chairman throws the towel in, dumps all his stock, at the same time. The company has committed to a recycling plant thats going to severely use up the cash. Whilst H2 is always cash positive for CHNS, in general H1 severely uses cash in working cap (or you can fund it by bumping up your borrowings from the banks). With cash being used to fund this recycling plant, and with the company openly saying cash is tight, would it not, looking forward, suggest to people that whilst the Finals might look nice, interim figures in 2010 could be rather "cash tight". Could it be that the Chairman did not agree with the recycling plant as it will necessitate more cash being found by the company ? Will it mean that come year prelim figures, the company will be looking for placing monies in order to boost the cash position ? Was the point of the recent city presentations a first step for the begging bowl to be put out soon, in order to raise funds to ensure that come H1 2010 they are not going to be struggling for cash and with bank borrowings already high could it be they will be forced into a sudden placing to boost the balances, if they cannot secure funding in the interim period ? 2008 and 2009 was a period of massive expansion for telecoms with new base stations going in on a massive scale, however, the outlook for 2010 is less new stations and lots more simple upgrades to existing. That would explain CHNS trying to move into new markets as the outlook for base station batteries is weakening along with increased competition. I am unsure why the Chairman moved on so suddenly and dumped all his shares, but IMO he could have seen that the recycling plant is going to push cash to the limit and might mean a placing to raise funds. On top of that the base station battery outlook is weakening when you look to 2010 and 2011. Therefore, as I am sure many have learnt, do not get fooled by people spouting EPS figures. Cash (and committed cash spend) and outlook are key, not the EPS figures. I have warned about placing worries for some time, nice to see a certain CHNS bull finally admitting that it may be necessary. However, in the present market, the wolves will drive the price down if they get any sniff its going to be attempted.

The news of the placing yesterday in which Directors and Management took part makes the cynic in me think that indeed in 2010 we shall see a takeover come into effect. 6 to 9 months time ??? http://www.investegate.co.uk/Article.aspx?id=200912080700287036D .

Interesting article : http://www.fool.co.uk/news/investing/investing-strategy/2009/11/03/china-and-the-bigger-fool-theory.aspx .

Would love to see 500p end of this month, might tempt me to take a little more profits :) Great stock and hope all are showing massive gains by now, I certainly am.

Looks like a Seymour Pierce note is coming out soon, according to an update from Armshare following the news yesterday. That might drive some interest. http://www.armshare.com ...............The October update reported the start of a 3 year, £2.1 million collaborative R&D project - the Technology Strategy Board is providing a grant of £1.12 million to a consortium of 6 companies led by Surface Transforms - the purpose of the project is to develop an innovative ceramic disk, using both waste carbon and contemporary manufacturing processes, with the objectives of improving friction characteristics and substantially reducing wear - the consortium includes Bentley Motors, Faively Transport (manufacturer of train braking systems), Federal-Mogul and Loughborough University (specifications, analysis, testing) - Surface Transforms is likely to receive £470,000 of the grant over the next 3 years. Research Standing Whilst scarcely visible financially, the company has made very good commercial progress over the last 4 years. ArmShare is an advocate of constructing portfolios comprising at least 80% invested in established businesses combining growth and value and up to 20% in a portfolio of earlier stage higher risk businesses considered to have the potential to develop into the former - Surface Transforms is an obvious candidate for the '20%' category of such a portfolio.

All these companies with poor operating cash flows are making placings. RCG today, GNG recently, CHNS next ? The market is being rough on them, and so it should really, its to be expected really and any posters attempting to "hype and ramp" them up on revenues is misleading people I think.

Errr...look at operating cashflow. How much cash was generated by operations at the interims........answer none, as cash flowed out of the business, not into it. Look at the consolidated cash flows statement.

There are rumours doing the rounds of cash problems, perhaps thats why the Chairman left and dumped his entire holding. Wonder if CHNS will do like GNG, sudden big discount placing to get some money. Its the trouble with these types of companies, its the easiest way they can get orders is by offering the product free up front and "pay when you want later" terms. Its an easy way to ramp up revenues, its also an easy way to ruin when it all goes wrong. Lets guess, they need to "strengthen the balance sheet" to "pursue large orders" - which means they have run out of cash and need some more working cap more times than not.

ell if the recent rise has been in expectation of a court room settlement of the will, its not going to happen for a lot more months to come. Later this year or early next is the guidance from the judge on when the verdict will be given. http://www.examiner.com/examiner/x-11031-Orlando-Feng-Shui-Examiner~y2009m9d23-Who-will-inherit-Nina-Wangs-estate-Chinachem-Charitable-Foundation-Ltd-or-Feng-Shui-adviser Who will inherit Nina Wang’s estate: Chinachem Charitable Foundation Ltd. or Feng Shui adviser? September 23, 3:55 Nina Wang (AP photo)40 days of courtroom battles are over having left the question of who will get the multibillion-dollar estate without an answer. Nina Wang, the richest woman of Asia and the 204th richest person in the world, according to Forbes, died in April 2007. After her death, two wills were................................

Shares weak in Hong Kong today, might be this story and the fear that Tony Chan might start selling RCG and dumping lots of liquidity into the market with might create a mega overhang....... http://www.thestandard.com.hk/news_detail.asp?pp_cat=30&art_id=88206&sid=25454818&con_type=1 Wednesday, September 23, 2009 Fung shui master Tony Chan Chun- chuen continues to sell assets amid his legal battle with the Chinachem Charitable Foundation for the estate of late billionaire Nina ......................

Firstly, most companies who look to work in India set up a JV, its very normal. You have been talking about Indian sales for years, so how can you be surprised at the mention of a JV, its the way to do business in India. Secondly the non-exec said what is expected, they will "review the dividend policy".........yes, all companies do that with a view to paying their lovely shareholders more. I would have taken more from "we are not immune to whats going on in the world" as more significant.

The Chairmans departure and the way it was handled will leave a bad taste for some people, along with of course the flat business performance (in local currency terms) and the big cash drain down. Well, for the brave holding on, good luck.

Well another RNS today. http://www.investegate.co.uk/article.aspx?id=200909160958131430Z The ex-Chairman now dumps all his stock for a discount 180p a share to the CEO who is also the new Chairman and also the major holder with now 65% of the shares in his control. Is it getting all very mucky and messy ? And why did the ex-Chairman dump all his stock for a discount price ? Does he know something is coming ?

And those currency movements really do "hype" the figures. If you convert the figures back to RMB you can see a different tale. 2008 1st half sales = 957,723,147 RMB 2008 2nd half sales = 1,424,220,260 RMB 2009 1st half sales = 985,157,893 RMB So sales are really near flat on H1 2008, and well down from H2 2008 to H1 2009. 2008 Interim RMB to Pound rate was 13.9622 2008 Prelims RMB to Pound rate was 12.4398 2009 Interims RMB to Pound rate was 10.2127 So as they report in sterling their sales, EPS, cash etc.. are all being nicely boosted by the falling pound as they convert from RMB to pounds. However, this little "performance enhancer" is now over (and its been worth 30% boost to sterling figures from 2008 interims to 2009 interims) Always convert figures back to local currency when you get these AIM companies that report in sterling and get a nice boost from currency movements, a better and more transparent picture appears.

Interim dividend slashed. Cash down by a large amount. Exports falling. Weak statements. Inventory and Debtors rise by large amounts. Boardroom problems and the major holder who no becomes CEO and Chairman (meaning that in terms of transparency CHNS is even worse IMO) (And its not a good time given their statements today to be becoming less transparent) Thats why the price went down and will likely keep in a falling trend in the coming weeks and months.

Some good comments by paulypilot, wshak etc.. on this web site : http://boards.fool.co.uk/Message.asp?mid=11672623&sort=whole .