Aquatic Food Share Discussion Threads

[galeforce1] 20/3/2017 14:09

brwo

That shareprophets article reads like pure paranoia to me.

The writer is determined to find a fraud at AFG, but he produces not even the smallest piece of evidence that there has been any.

That's because there is no fraud.

celeritas

I agree the behaviour of many Chinese companies on AIM in 2015 was terrible. Hopefully the bad guys have now gone and those that remain (like AFG) are better supervised by the authorities.

[celeritas] 20/3/2017 13:49

Po Ling Low is a well respected CFO who will add gravity to the accounts.
However I cant say the same for the CEO, he could very easily just de-list from the UK as many have done in the past.
Past Chinese companies have completely tarnished the sector, would anyone now take the chance with plenty of other co's to invest in, after all this is still about attracting investors.
I also dont like talk of trouble moving money to the UK, major red flag.

I'm sure not all Chinese co's are the same, trouble is now spotting the very rare good one.

[brwo349] 20/3/2017 12:29

a must read

By Nigel Somerville, the Deputy Sheriff of AIM | Monday 20 March 2017
hxxp://www.shareprophets.com/views/27919/china-fraud-aquatic-foods-q4-update-drowning-in-a-sea-of-red-flags

[galeforce1] 20/3/2017 12:09

brwo

There is no reason to think that this company is fraud. It has a high-calibre CFO who was with Price Waterhouse in Kuala Lumpur, then at West China Cement. She would not put her name to false accounts.

There is clearly some risk in investing in a business that is 100% domestic Chinese. That's why AFG has a PE of 1.

But there is no reason that I'm aware of for thinking this company is a fraud. That's just your own obsession, or perhaps some kind of obsessive xenophobia.

[brwo349] 20/3/2017 10:56

It's a fraud guys. I think we all know that.

[galeforce1] 20/3/2017 08:55

Sphere

Beware the Yellow Peril!

[sphere25] 20/3/2017 08:50

Already well documented, but if you're new, save yourself some money and do not trust any of these suspect foreign AIM listed companies.

All that "cash" eh?

Why not do some buybacks or pay a special dividend? Preserving the cash pile my beeeehind!

The nerve of these dodgy Chinese crooks to come over here and try and con hard working folk out of their money.

What a shame there are no consequences!

[galeforce1] 20/3/2017 07:43

Phil

The business seems to be doing fine, despite quite a challenging market and cautious consumers. Q4 sales of RMB283m (£27.7m). Net margins seem to be holding at 10%-11%.

Net profit in 2016 should be £11.1m, which puts us on a PE of about 1.5.

In GBP terms, sales in 2016 are 7% higher than in 2015.

The cash on the balance sheet is around £44m.

The line about the PRC making it difficult for AFG to remit funds out of the country is a surprise, I agree. Hopefully that's a temporary problem.

[phil1969] 20/3/2017 07:22

A poor update. Making excuses already regarding getting cash out for divi payments before it's even a problem.

[galeforce1] 17/2/2017 16:14

I emailed AFG's CFO (Lo Ping) asking when we could expect the Q4 2016 trading update.

I got a nice prompt reply saying they hope to get out the Q4 update and the 2016 preliminary results before the end of February, and that a Board meeting is being arranged for next week 'to discuss the results and the 2017 outlook'.

Lo Ping is a Board member and the head of AIM compliance in the company.

Although I can entirely understand why investors are so ultra-wary when it comes to Chinese companies on AIM (given their dire track record) I am impressed by this one.

[celeritas] 13/2/2017 14:17

Another going a very similar route to many Chinese cos before it. I do think Aim listed Chinese Cos are are impossible to invest in until something is done about the fickle nature the CEO's treat UK investors.

[galeforce1] 07/2/2017 11:13

mattjos

You are definitely right to warn investors to be careful with Chinese stocks on AIM, given their track record.

On the positive side, AFG appointed an impressively high-calibre CFO last year. She's a career CFO, who was with West China Cement(probably my most profitable investment of the last 10 years) and before that with PWC in Kuala Lumpur. She has a useful options package, from 20p to 45p. The presence of a good CFO gives me a bit more confidence here.

RE. the management not appearing in London. I understand the UK-based NEDs advised them not to come last year, given the turmoil of the Brexit vote and the Chinese frauds on AIM in 2015. That was probably the right advice. Nobody in the UK wanted to know about Chinese companies last year. That might be very slowly changing. Haike Chemical has recently had a good recovery.

It's not surprising there is zero liquidity, given the spread. Also, liquidity wasn't helped by a decision to cut the interim dividend in September, which sent all the wrong signals to nervous investors.

We are due a Q4 trading statement any time. I'm looking for Q4 turnover over 225m RMB (GBP 26.4m) and net margins around 11%.

[mattjos] 06/2/2017 23:32

Catch up with TAIH .. another one that has fleeced uk shareholders. Be very careful here

[brwo349] 31/1/2017 13:06

Jiasen (JSI) delisting from AIM but going to list on the ISDX exchange instead to save costs. That's despite having 45 million in cash!! Oh dear. It also claims the AIM market is very illiquid. That explains why they are going to relist on an even more illiquid market then. Oh dear again. Yet another Chinese fraud bites the dust. How many are there left?

[chesty1] 25/1/2017 10:12

Falia stop pumping this over Advfn it just sounds desperate.....Everyone buy wafm it's going to explode north and soon, I know it is but will wait for the rns for the herd to notice it I don't need to pump it up....This may well be amazing let the share price do the talking, but not for me.

[celeritas] 25/1/2017 09:07

Yep, in both directions.

[falia] 25/1/2017 09:05

we all know how fast these move

[celeritas] 25/1/2017 09:03

Just look through the long list of aim listed Chinese co's that have done the dirty on investors, Chinese co's need to build trust but this takes time, years of reporting solid accounts. Cutting the dividend here when there was no need was a terrible move, it just sends out the wrong message.

[falia] 25/1/2017 09:03

we'll get a haik like rise very soon

[dumbo4] 25/1/2017 09:02

Yes galeforce. I'm looking here at these levels but after the disaster with JQW I'm suspicious. They claimed to have great cash reserves which was all a lie. And years ago RCG. How do you know ?

[falia] 25/1/2017 09:02

we'll get a haik like rise very soon