-3x Short China Discussion Threads

[philw2009] 30/3/2011 14:11

My small holding is in my SIPP so I think I have to sell. Thanks to rivaldo and mattjos for all the top quality info. I will miss those eps calculations!

[jimbox1] 30/3/2011 14:00

Sad to see this co leaving Aim, but not worth holding after delisting, in my view. The patchy results record makes a Hong Kong listing unlikely in the near term. If they stay private, future accounts may not even be published in English. No idea what protection there is in China for minority investors in a private Chinese company, but the chances of a foreigner obtaining any redress will be slim and almost certainly expensive.
The tender terms aren't that good, but they could be a lot worse. I'll take the exit, thank you.

[calahan] 30/3/2011 13:54

Sorry to see this one go for a little on the cheap side when considering those results, and hugely on the cheap when considering the results CHNS are likely to produce it the future :(

I've been in CHNS since around Mar '06, and was very happy to hold for 10+ years to allow their value to fully mature. I'm in decent profit overall, but some very badly timed top-ups saw me miss out on a lot of the potential gains (tripling up after the first break of 200p, and at the highest price from launch to mid '09 was a particularly costly one :().

Tempted to hold after the de-listing in order to see the journey through until the end, but I know reality will dictate I won't be able to tie-up such a large chunk of my assets in a hard to reach form. Although I might let some ride for the loyalty.


Mainly posting as I'd like to thank all those who have posted on this thread over the years that IMO helped make it one of the most pleasant and well informed threads to read on these boards.

In particular I'd like to thank JTCod, who's initial research and contributions got me interested (and ultimately invested) in CHNS to begin with. And much thanks as well to Mattjos and Rivaldo who provided some invaluable research and opinions throughout the years, which helped bolster my faith no end on some of the darker days that this journey has seen. With the dip below 100p that we had being a particularly tough test of belief.

And I must say all credit to Rivaldo for getting out when he did, as that was a great piece of top calling that I wish I had heeded to at least bank some profit. Ah well, live and learn :)


Thanks again to all those who (positively) contributed to a great thread and (at times rollercoaster) journey.

Best of luck everyone in your future endeavours and investments.
Calahan
(a CHNS investor, and virtually silent thread follower, for 5 years)

[martylangan] 30/3/2011 13:30

... im off over to PMHL too.

[polythene] 30/3/2011 12:07

I just got 376 for my 11,000 holding. I'd be paying 41% tax on dividend anyway, so I'm happy enough that I don't have to wait months. I'm out. I'll get my coat. Thanks all.

[eagle12357] 30/3/2011 12:03

After the exit of China Shoto today at a 50% premium, PMHL is looking even more interesting.

PMHL market valuation £170m.

PMHL Total Assets worth £538m (Net cash £140m)(Stake in ACC that has a market value of £166m). Waiting for PMHL to play catch up.

[ibrahim1962] 30/3/2011 12:02

Comment on the offer here from analyst Ben Jaglom who tipped them a while ago...

[dreggspicker] 30/3/2011 11:41

looks like most of us are thinking of keeping some of our holding, if that is the case, there would be some safety in numbers, so I may also keep say 10% to 20% and see wot happens. The only trouble is I am not super rich like some of you here ..... :-}

[sirookietrader] 30/3/2011 11:32

Very sad to see this go. I viewed China Shoto as the most promising Chinese company on AIM for the truly long-term investor. I will also consider holding shares privately in the hope that they list elsewhere in the future.

[eagle12357] 30/3/2011 11:05

Congratulations to all on here - I hope something similar happens over at Prosperity Minerals.

[mattjos] 30/3/2011 10:49

oh well .. another good chinese company exits AIM due to shortsighted investors.
i expect the investment community will be moaning in a couple of years time about lack of access to asian growth stocks when there are none left here.

just like JHL, i believe the mgmnt commentary has, perhaps, focussed on the negative aspects in advance of a takeout ... albeit Shoto have been rather more realistic with the price offered to investors.
Seems most likely these will spring up on another bourse at some stage in the future & at a lot higher price.
A damn shame.

I suggested a 'carpet-bagging' approach to chinese aim stocks as one possible investment strategy. the money may now get concentrated into the remaining ones &, frankly, pmhl does look the next most promising one.
Good-bye Shoto!

[evaluate] 30/3/2011 10:47

I agree JTC.

I'm tempted to hold. I think they'll be £7 equivalent in HK within 12 months.

My position is held via a spread bet with IG.

Anyone know what my options are in this circumstance?

[jtcod] 30/3/2011 10:42

I think this is a very strong statement going forward:

9. Current Trading

Today, the Company announced its final results for the year ended 31 December 2010. In the results, the Chairman made the following statement;

"Against the backdrop of continuing complications both in China's domestic markets and internationally, marked in particular by a huge decrease in infrastructure construction spending by China's three telecom operators, 2010 proved to be a challenging year for China Shoto. In spite of these difficulties, the Company implemented developments that we believe position us strongly to expand the business as we continue working to create value for our Shareholders. During the year, the Company successfully completed the acquisition of Rugao Tianpeng, providing us with a battery recycling operation that enables the Group to meet environmental criteria imposed by key customers. We also continued working to maximise our existing technology advantages and customer relationships and focussed our sales strategy to maintain market share and remain the largest back-up battery supplier to China's huge telecoms sector. Further, our strong R&D capabilities resulted in the successful development of new battery types, providing opportunities into other domestic markets, such as the electric of power, railway and electric bicycle sectors. Considerable progress in our exploration of key customer potential has been made in overseas markets. We have also continued working hard to controls costs and evaluate more efficient production methods whilst maintaining overall production levels. At the end of the year, the Company disposed of its entire shareholding in Yangzhou Zhenghe for a cash consideration of RMB 4 million being a profit on disposal of RMB 820,000."

[jtcod] 30/3/2011 10:28

Not yet edmund but I agree with you.

[njb67] 30/3/2011 10:27

Thx JT - I still have the problem of deciding what to sell to raise funds to purchase CHNS outside the SIPP.

njb

[edmundshaw] 30/3/2011 10:23

JTC, do I read that you are going to continue to hold these privately? I'd be interested to do the same for part of my holding, but if so, perhaps it would be worth centralising/sharing requests for information from CHNS.

Have you talked to the co re: getting hold of accounts information & other useful business development information?

[galles] 30/3/2011 10:20

What are the implications of holding privately owned shares?

How does one go about checking the prices, selling etc? I am guessing the brokers will still hold the share certificates for you electronically, which means the dividends and everything else are as per normal? Are privately owned companies still obliged to provide their yearly accounts? Just thinking how one can keep the shares and yet be well informed about the company's operations.

Really haven't been in such circumstance before, hence, apologies for the load of questions!

[jtcod] 30/3/2011 10:07

njb
Free up cash by purchasing privately owned shares with the sipp.

[crawford] 30/3/2011 10:05

I'm disappointed by today's news in a way, I actually bought quite a few last year at 446p after the results, so in profit overall but the takeout price is still low.

I'd be tempted to hold on privately, but probably too scared to do so!

[dreggspicker] 30/3/2011 10:01

nice work blue, I presume they are blue tunas ......

[njb67] 30/3/2011 09:57

JT

Checked the HL website and privately owned companies are not on the list of their qualifying investments. I will call them though to double check.

Fair point about buying the certs (or picking up CHNS shares in the market). The challenge is that I would need to sell something first to raise the funds and I do not have any shares that I would particularly want to sell at this stage.

Not a bad problem to have to be honest.

[bluedimension] 30/3/2011 09:56

:) Work in international tuna conservation. Spend about 6 months of the year in the middle of the Indian or Atlantic Ocean working with Japanese, Chinese and Korean Vessels. Currently in South Africa waiting for a vessel to pick me up. So not the moon but sometimes feels close.

[dreggspicker] 30/3/2011 09:56

I recon Mattjos is going to be gutted when he gets up and reads what has happened...