Bluestar Secutech Share Discussion Threads

[edmundshaw] 20/7/2011 10:56

Results out. Look good to me at first glance...

[saucepan] 20/7/2011 08:25

ShareScope (see above) had today as confirmed preliminaries. However, the Company itself said the following in its 31 March update:

The Company expects to announce its results for the Period in mid July 2011.

So, I guess, any time soon.

[3800] 20/7/2011 08:19

Was anyone else expecting a prelim announcement here this morning?

[edmundshaw] 11/7/2011 16:16

82k sell seems to have caused the drop today. The bane of illiquid shares - but also the boon if you want to add! :-)

[hedley2] 07/7/2011 15:33

Company appears completely unloved, little or no trading taking place, one wonders where it's headed. I did e-mail Romeo Kwok about investor updates ( available on company web site) and received a reply in the form of a recommended link. Perhaps he would know date of results?

[saucepan] 07/7/2011 14:39

A more-comprehensive snapshot of ShareScope fundamentals, in case of interest:

[saucepan] 07/7/2011 14:21

Results must be close: The Company expects to announce its results for the Period in mid July 2011. (From 31 March Trading Update)

ShareScope is showing 20 July as a confirmed date, but I am not certain of the accuracy of this, as I have not seen confirmation from the Company.

[saucepan] 14/6/2011 21:48

Thanks, points well noted.

[3800] 14/6/2011 20:39

Thanks for summing that up better than I could Aleman, I do own some of these but do consider them to be higher risk than the pure numbers first lead anyone to believe. 3800

[aleman] 14/6/2011 12:43

Be careful with these. They book new contracts as revenue when they are signed. It shows up a a huge and growing receivables number in the accounts. That means next year's higher revenues could be booked with this year's lower costs. If turnover were flat, that might not make a huge difference but in a growing commpany, that could hugely flatter profitability. they might really be buying growth by not really making a profit by conventional accounting. As the profitability could be meaningless because of this, you will have to watch cashflows very carefully and they are clouded by seasonality of banks paying in China. I'm not saying this is a bad investment, but profit and loss numbers aren't comparable with most other companies so great care is needed.

[3800] 14/6/2011 12:36

Hi Saucepan see posts 979 to 985 which discuss revenue and recievables. 3800

[saucepan] 13/6/2011 22:08

Hi 3800

No, not specifically. The other parameters looked good enough for me and it is not an indicator I am strong on. You might like to elaborate your own take.

I did however note that the price to turnover ratio (sometimes referred to as Price to Sales ratio) is 0.85. The standard interpretation is that anything less than 1 is good.

[3800] 13/6/2011 12:21

Hi Saucepan, did you look at free cash flow?
3800

[saucepan] 13/6/2011 09:24

Hi Folks. I invested in BSST this morning after a weekend ShareScope trawl and other research looking for value/growth stocks.

The following is a snapshot of some of the fundamental data that attracted me, in case of interest:



Rolling P/E 2 = 3.80
Slater PEG = 0.29

[boadicea] 04/5/2011 22:13

Take a look at West China Cement, WCC (HKX=2233).

It delisted here last August at about 700p (having risen from 500p over the previous month or two) and, concurrent with a further share issue at HK$1.69, relisted in HK on the basis of a 50 for 1 split, i.e. equivalent price of about 14p.

They now stand at HK$3.10, equivalent to 24.2p having recently been as high as HK$3.60 (28.1p). So they have nearly doubled - or better if you refer to the period shortly before relisting was considered. That is on top of the considerable appreciation they had in the previous three years while listed on AIM.

[theuniversal] 04/5/2011 20:59

what would happen if they did relist to hk from the uk , how would that effect the share price? if anyone has a good example please fill free to share..

[philjeans] 12/4/2011 08:12

This is a much better proposition than RCG!

I f they re-list in HK, I shall be very happy to hold - eg. currently up some 21 fold on my original holding of 10k WCC - AIM to HK.

BSST is high tech, high growth in the fastest growing country in the world with no debt and good margins with first class customers.

Strong BUY for me.

[boadicea] 11/4/2011 20:45

Re: RCG rejection of de-listing resolution.
It was not totally unexpected. The board have previously lost an important resolution on a share split. There is strong entrenched opposition arising from the Chinachem/Wang legacy situation and the 75% majority required for de-listing always seemed questionable.

There is little doubt that the current antipathy towards Chinese co's listed on AIM is a strong inducement to delist here and relist somewhere like HK.
We should not be surprised if BSST (or GNG) eventually follow the same well-worn path.

[masurenguy] 11/4/2011 15:26

Cheers David - interesting article.

Normally any investor taking a stake of 30pc or more would be forced under rule nine of the City's Takeover Code to make a bid for the rest of the company......However, the Code does not apply to most foreign companies listed in the UK because the Panel does not want to extend its jurisdiction to areas where it believes it cannot operate as an effective regulator. As one City source put it: "The Panel doesn't want to hold out a false promise to investors that it might not be able to deliver"

I think that the TP's view that it cannot operate as a regulator outside of the areas of its jurisdiction is an utter cop out. Membership of the London markets is subject to compliance with the rules. It does not matter where the listed company is domiciled in that context. Any company listing in the UK should have to provide a legal undertaking to abide by the rules and the Nomad should also have some legal liability in policing that compliance. At least that would ensure much greater DD by the Nomad before accepting any new appointment and they would also be putting themselves on the line, both financially and in terms of reputation, which might eliminate some of the more "dodgy" IPO's from ever seeing the light of day.

FTAOAD - these latter remarks do not apply to BSST since I have no reason to believe that there is anything untoward about the company (I would never have invested had this been the case). However, the potential to delist here in the future, as a result of the CEO's dominant shareholding, was an issue that had begun to concern me and todays announcement would have further reinforced this unease had I still been holding here.

Edit: I see that RCG have had to abandon their plans to delist from AIM following a rejection of the necessary motion to approve this move at their AGM today. "The special resolution regarding the cancellation of admission of the Company's shares ("Shares") to trading on AIM and PLUS proposed at the SGM held on 11 April 2011 was not passed and the ordinary resolution regarding the general mandate refreshment was passed."
An unexpected development but I'd imagine that the majority of AIM holders are already long gone !

[philjeans] 11/4/2011 12:36

I take the opposite view entirely; a very good trading update last week and now we see the directors buying a load more shares.

My thoughts are that they are about to launch a takeover of the business and/or re-list in HK.

Hugely undervalued, of course, and the receivables are a red herring - very, very common for business in China to hold onto bills for 6 months or more before paying up. Even large corporations like banks only settle just before the year end.

Just topped up with another 25k.

[masurenguy] 11/4/2011 12:17

Interesting development !

Director/PDRM Shareholding

BlueStar SecuTech Inc. (AIM: BSST), a leading provider of digital video surveillance solutions in China, was notified on 8 April 2011, that Seculine Technologies Inc acquired a total of 1,300,000 ordinary shares in the Company ("Shares") at 21.7p each through the market. Seculine Technologies Inc is 100% owned by Mr Xiao Gang, a director and Chief Executive Officer of BlueStar.

Following this acquisition, Mr Xiao Gang, together with his wife Ms. Liu Jin Qing, who is also a director of BlueStar and holds her shares through her 100% ownership of Sunshine Holdings (Private) Limited, a company of which she is also a director, have an interest in 32,170,000 Shares representing 44% of the Company's issued share capital.Under Article 13 of the Company's articles of association, the Company's directors have approved that Mr Xiao Gang and Ms Liu Jin Qing may purchase Shares in the Company up to a maximum aggregate amount representing 49.9% of the Company's issued share capital.



Given the receivables issue, the share price has been stuck in a 20p - 25p range over the past 15 months so I took profits and sold my residual holding @21p last week. Todays announcement only adds to my other suspicion that they could delist in due course with unpredictable exit values for shareholders at that time.

With a 20% capital gain on this residue of my original holding, plus dividend income too, this has been a steady if unspectacular performer, but there are better opportunities elsewhere, particularly with the uncertainty over their future listing status. Good luck to remaining shareholders - I won't be updating the thread in the future.

[3800] 31/3/2011 20:03

Disappointing lack of detail regarding the receivables. No more news until July, no wonder the day traders have moved on.
3800

[dabiz] 31/3/2011 15:21

Makes you wonder what is needed to make the share price move. Little or no interest in this co at the moment.

[masurenguy] 31/3/2011 14:16

Some moderate progress appears to have been made in the growth in both sales and profit but no reference at all to any improvement the current level of receivables.
______________________________________________________________________

RNS Number : 9042D
BlueStar SecuTech, Inc.
31 March 2011

Trading Update

BlueStar SecuTech Inc. (AIM: BSST), a leading provider of digital video surveillance solutions in China, is pleased to provide an update on trading for the year ended 31 March 2011 (the 'Period').

OVERVIEW

Overall trading in the Period has been good and the Company's consolidated revenue and net profit are likely to be up approximately 10% on the previous year's figure. During the Period, the Company won a number of key contracts totaling over RMB 33 million, all of which were recognised as revenue by the Company. The Company also won a framework contract with Shanghai Pudong Development Bank (SPDB). This contract provides the Company with exposure to all SPDB branches within China and has generated revenue of RMB 2.7m for the Company during the Period. The Company's acquisition of Ke'an Yuanjing Technologies Development Co. Ltd for RMB 6.87 million, announced on 18 May 2010, has generated revenue of RMB 10 million during the Period for the Company.

At the surveillance command centre with Kaiyuan Company, 500 financial outlets have so far been linked to the centre's services, generating recurring service fees for the Company of RMB 0.81 million over the Period, up from RMB 0.39 million for the year ended 31 March 2010.

OUTLOOK

China Security Industry's 12th Five Year Plan was officially approved on 16 March 2011 to achieve the overall goal of doubling production within the security industry by the end of the 12th Five Year Plan, as well as achieving a 20% annual growth rate in the industry in 2015 and reaching gross output of 500 billion yuan per annum. Mr. Xiao Gang, CEO of BlueStar commented: "Overall, market conditions remain strongly in our favour and we have a wide range of further opportunities to grow revenues. We are confident with our strategic direction and look forward to continued growth for our business in 2011 and beyond."

The Company expects to announce its results for the Period in mid July 2011.