Amd Commo Exagr Discussion Threads

[debaleb] 16/10/2009 23:24

Thanks Loverat.

It seems this Simon Littlewood fellow has finally ran out of luck and met his match, let's hope he's brought to justice swiftly along with those in on the scams.

I'm sure this thread has played no small part in his downfall, well done.

[loverat] 16/10/2009 19:03

debaleb - thank you. I will reply later but today is a victory for honest directors.

As Winston Churchill once said......


"Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning"

[debaleb] 16/10/2009 17:09

It's amazing that so many companies on the markets seem to fleece shareholders out of money at will in a fraudulent manner yet appear untouchable, when I first got involved in stock market investing I never dreamed it would have been so corrupt, what are the nomads, auditors and regulators doing to stop people being ripped off? very little it seems.

I don't know the whole story here but have read with interest, my own story involves Meldex, some of the fraudulent events uncovered there are almost unbelievable.

Thanks for your efforts Loverat, wish I'd read this type of thread before ever parting with a penny to the spivs in the city, would have been better off giving my savings to the local drug dealer for safekeeping!

Pity we don't have many others like you out there looking out for conned investors.

[loverat] 16/10/2009 16:38

The great thing about Freddie was not only was he brilliantly talented he also encouraged and brought out the talents of other members of his band. A peoples person.

[loverat] 16/10/2009 16:26

Or perhaps even this.......

The invisible man

[loverat] 16/10/2009 16:24

Or perhaps this would be more appropriate......

[loverat] 16/10/2009 16:23

Yes readers.....


It's a hard life - particularly in some places more than others......

Enjoy :

[loverat] 16/10/2009 13:04

egoi

Agreed - some positive progress.

Yes - bizarre events and postings. I reckon there might be more to come.

[egoi] 16/10/2009 09:38

Well what do i think?

I'm tempted to say, given what are imho the increasingly bizarre nature of recent events and postings, 'I'm sorry I haven't a clue'; but my 'intuition' (lol) indicates to me personally that Mr Negal may be getting somewhere.

Nevertheless there is little mention of specifics again - former investments and/or names like China Education, China this....... China that............

[loverat] 16/10/2009 08:57

cougar6 - 19 Jul'07 - 15:49 - 7972 of 8797
sorry to see your blind slapdash


slapdash - 19 Jul'07 - 16:25 - 7973 of 8797
cougar6 - I'm blind?
In one of the biggest booms in history - current Chinese stock market and economic boom - this has lost 40% in two years. Meanwhile the All-share in the UK has gained about 35% and the Chinese stock market is probably up about 150%.
I'm blind? At the end of the day the stock price is the final unbiased judge. It is saying the CEO is pants for not being able to cash in on a growing economy and an increasing stock market. In fact to lose money in such conditions is really quite an achievement. You wonder if he purposefully went out to find rubbish companies.


And cougar6 accusing another poster of being 'blind'. Think it's time you apologised to Slapper for that.

[loverat] 16/10/2009 08:32

Yes - looks like a blow for the other offenders. The 'appropriate authorities' will find it difficult to ignore this. Who knows - it might even be one for the police. And it looks as if the whole affair could blow wide open affecting not just Littlewood but the others who assisted him and turned a blind eye.

[loverat] 16/10/2009 08:05

And this bit looks worth waiting for......

It remains our intention to hold an AGM on 27th November at which we will seek shareholder approval for the 2007 accounts. We also plan to send to shareholders a summary of our findings with regard to the activities
of my predecessor, Mr Simon Littlewood, an expanded version of which will be sent to the appropriate authorities in due course. The accounts for 2008 and 2009 will be presented to shareholders at AGMs to be held early in 2010.

[loverat] 16/10/2009 08:03

Have a read of this - update to LDC shareholders



London Asia Capital plc
35 Piccadilly
London W1J 0DW
Tel: [phone]
Fax: [phone]
www.londonasiacapital.com

16th October 2009

Dear Shareholder

Partial Offer at 5p Cash per Ordinary Share in London Asia Capital plc
In my last letter dated 18th September I said that your directors believed that our single largest investment in
the unquoted shares of Zhongying Changjiang International Credit Company Limited ("Zhongying") may have
real value. The Earl of Cromer and I have since returned from a visit to Wuhan and not only are we now
confident that this investment has increased substantially in value but, as a result of our negotiations, we also
believe that the relationship between London Asia Capital plc and Wuhan Kaidi Group, our investment
partners in Zhongying, can be greatly strengthened. This will be to the benefit both of shareholders who seek
the return of cash and of those who would prefer to see the company pursue a strategy of further investment
in China. In this letter I would like to explain what we have in mind.
It has not been a simple matter to establish the quantum of our investment in Zhongying as much of the
information previously provided to shareholders was incomplete or incorrect, but we have now calculated
that the company's net investment was in excess of £10.2 million. This, however, was in partly paid shares
and London Asia Capital plc has an overdue obligation to invest a further £3 million. The purpose of the
recent visit to Wuhan was with the aim of deciding whether or not we should invest this further £3 million and
determining the consequences of failing to do so. Our first success was to agree in principle that the £3million
be reduced to £600,000 with the Wuhan Kaidi Group taking the balance of our investment commitment. Apart
from reducing the depletion of our cash, the willingness of Kaidi Group to increase its stake spoke volumes for
their confidence in the value of Zhongying.
We were particularly encouraged by what we learned of the quality of the Zhongying investment portfolio.
Their single largest asset is a parcel of residential development land on Wuhan East Lake. We took
independent advice on Wuhan property and confirmed an increase in values in recent years. Another of the
investments, an agricultural business, was recently listed on the Shanghai Stock Exchange, realising a profit of
700% over the original investment. The majority of their remaining investments are in energy related
enterprises with a strategy of divesting of businesses not related to renewable energy. When in Hong Kong
we sought independent advice as to the merits of Kaidi Group as an investment partner and the reports were
most favourable. We concluded that at the very worst there had been no diminution in the value of our
investment and, at best, it had increased substantially in value. Even with no increase in the value of the
underlying assets, the appreciation in the value of the RMB with respect to Sterling since the date of
investment from RMB15 to RMB11 took the value of our shares in Zhongying to £13.5 million, equivalent to
more than 50% the net assets of London Asia Capital plc today.
During our discussions with Mr Chen Yilong, Chairman of Kaidi Group, the possibility of a closer relationship
between our companies was discussed. The talks progressed to the possibility of Kaidi making an Partial Offer
at 5 pence per London Asia Capital plc share in cash to all existing shareholders or subscribing for new shares
at 5 pence per shares or a combination of both buying shares from shareholders who wish to sell and
subscribing for new shares. Mr. Chen is a highly respected entrepreneur in both business and political circles
in China and your directors are very excited at the prospect of Kaidi taking such a significant stake in your
company and the opportunities this will bring in the future.
Registered Office: 35 Piccadilly
London
W1J 0DW
Incorporated in England
Company No. 3784771
The advantages to both companies are clear. Kaidi gains low cost access to western capital markets, which, of
course, means that London Asia Capital plc will relist, while your company will gain a successful partner in
China, whose investment offers tremendous potential for the future whilst underpinning the value of the
existing investment in Zhongying at £13.5 million. These talks continue and a further statement will be made
as soon as possible. You are, therefore, strongly advised not to sell your shares at this time.
In the meantime the unaudited net asset value of London Asia Capital plc today is:
£m p/share
Cash 5.0 2.2
Readily saleable quoted shares 3.3 1.4
Cash or near cash 8.3 3.6
Less readily saleable shares 2.8 1.2 (will need to be discounted)
Cash and quoted shares 11.1 4.8
Zhongying unquoted shares 13.5 5.9 (illiquid and a long term investment)
Total net assets per share £24.6m 10.7p
In the short term, as part of a policy of liquidation, it might be possible to return as much as 4p in cash per
share to shareholders in May of 2010 after gaining the approval of the Court for a capital reduction. However,
this would leave only the Zhongying shares and the prospects of selling these would be bleak without the
support of Kaidi Group.
It remains our intention to hold an AGM on 27th November at which we will seek shareholder approval for the
2007 accounts. We also plan to send to shareholders a summary of our findings with regard to the activities
of my predecessor, Mr Simon Littlewood, an expanded version of which will be sent to the appropriate
authorities in due course. The accounts for 2008 and 2009 will be presented to shareholders at AGMs to be
held early in 2010.
Yours sincerely
Keith H A Negal MBA FCMA

[loverat] 16/10/2009 05:51

"Despite these achievements, the company was not able to translate the success into a rising share price"


So some of the directors thought they would try and ramp the shares on ADVFN. That didn't work either!

[loverat] 16/10/2009 05:39

I assume shareholders received this notification some months back?

A Message From The Chief Executive Officer

We are writing to update shareholders on progress at Commodity Growth plc, formerly Europasia Education plc (EPE). You will recall that the current board were appointed in 2003 following a succession of losses in the company including losses in 2002 of £2.2m. The board implemented a new strategy, raising in excess of £1.5m from investors in a series of funding rounds and re positioning the company as a pioneering education investment company focused on the fast growing Chinese market where the company opened a representative office. The company purchased 100% of Management International, a vocational and business training organisation and English 2000 a leading English language school. In addition, we established "Hello English" as a joint venture which went on to develop radio based courses in China which attracted an estimated four million participants, the largest non governmental training programme in the world. These successes led to Consultancy work for the Group including with the BBC to develop English language courses and with a number of Chinese Colleges.

After careful research, the company made two very important strategic investments. the first was in the Shandong International Institute for Translation which was purchased by Europasia Beijing and in which EPE had a 15% stake having invested £156,000 in cash and a much larger amount in shares. EPE Beijing was subsequently listed on PLUS market in London with a new ultimate holding company, China Education Group plc. Our investment at the time and subsequently helped to develop a second campus of 22,000 square metres of lecture rooms, libraries and student accommodation, boosting student numbers by over 3,000. The value of our investment, reflected in the PLUS listed shares rose by 160% at their height.

Building on this success, the company then invested to take a 10% stake in the Dalian Business Institute. As with the previous investment, the College was assisted in the development of new courses, marketing strategies and accounting systems and with a listing onto PLUS. The number of students rose by over 1.000. EPE increased its stake by another 5%. At its height, this investment produced a return in the form of PLUS shares of 109% for EPE

The loss in EPE of £2.2m in 2002 was turned into an audited profit of £1.1m for the financial year 2006.

Despite these achievements, the company was not able to translate the success into a rising share price. A consolidation, press coverage and private client broker tours failed to address this. The company was unable to raise additional sums needed for the next identified investments and so a decision was taken to alter the focus in order to continue growth. Victor Ng, an EPE Director devised the new strategy. The company would remain a China focused investment business but would concentrate on commodities. A new management team of four was recruited to run the business in China. Each of the four had the background, experience and contacts in the industry needed for the strategy. Benson Day was recruited as Chief Executive Officer, the London office was closed and a new office opened in Singapore where Benson Day was based. James Holmes, stepping down as CEO, joined George Allnutt as a non executive Director. The new management team announced the first investments had been identified and due diligence was underway. In the course of the following months the company moved back from profit to loss and the quote on AIM was ended. These events led to the resignation of the management team, then the new CEO and then Victor Ng.

These events have left the company in a difficult position. There is no longer an office or administrative base and there are now significant accrued interest payments due to loan note holders which will make a re-admission to the market and a fundraising difficult. The non executive directors have had to temporarily reassume executive functions in order to manage the portfolio and negotiate with the loan note holders. If these negotiations are successful, the directors plan to consult with shareholders on ways to develop the business and restore value to shareholders.

James Holmes

Chief Executive Officer

20 July 2009

[loverat] 15/10/2009 20:23

O.K - regarding matters here I would like the friends of the offenders to search their consciences and let me have any information which may be useful. We are now on to the second stage - two more directors are being investigated.

The Littlewood investigation continues and now Holmes is being examined in more detail.

[loverat] 15/10/2009 20:13

Looks like someone has been trying to hack into my e-mail today. Looks like one for the police if my provider manages to trace the offender(s)