Aquatic Food Share Discussion Threads

[galeforce1] 04/5/2017 08:37

I heard that AFG's NOMAD and the UK auditors are off to Yantai this month to take a look at AFG's operations. That seems positive. If AFG are paying for the NOMAD and auditors to visit them, that suggests a continuing commitment to a UK listing.

I'm sure we won't get the Finals until that visit has taken place, so that means end of May/beginning of June.

If the board decides to hold the final dividend at last year's level of 0.7p then we should see a decent rise in the share price. But whether they will do that is anyone's guess. I think they will probably reduce to 0.5p. At the current share price that would be total yield of about 6%.

[wstirrup] 26/4/2017 14:19

ASA which is an AIM Co., had senior management from China, and they were dismissed due to financial irregularities... TBH, I thought it was just isolated cases, but it appears more widespread, than I first thought...

Time to give the FCA a kick up the backsides?

W.

[celeritas] 22/3/2017 16:29

Same here regarding Po ling, I exchanged hundreds of mails backs in the WCC days, cant fault her.

You raise the issues that concern me and stop many from investing here but it could be so different if the CEO was more proactive in engaging investors who will need to be constantly reassured because of the scams that have gone before them.

WCC investor relations were great on AIM, it stood out.

[celeritas] 22/3/2017 11:08

No its a complete gamble on the integrity of the CEO.

[brwo349] 21/3/2017 22:38

So you wouldn't buy even though it's on a PE of 1 and it's literally drowning in cash.

Me neither.

[celeritas] 21/3/2017 10:13

WCC was a great co while on Aim, its had problems since the HK listing due to over capacity of cement in China.
Po Ling is a great addition here and I'm sure wont be part of any scam to her knowledge.

Since the wcc and to a lesser extent phml days I haven't seen one decent Chinese company, all have been scams which tarnishes any that might be ok with the same brush.

Would I buy this in its current form, NO would be the answer as I can see problems building and the company simply de-listing from aim.

[tradermick1] 21/3/2017 08:47

They are not tips, I'm just pointing out they have been around a long time and do not look like scams like most of the other stocks.

[galeforce1] 21/3/2017 08:41

Trader -

I'm exactly at break even on AFG. Average buy price of just under 10p. But it's v illiquid at the moment, so it would be difficult to exit. But the liquidity position may change over the next year or two.

I will take a look at the stocks you mention.

[galeforce1] 21/3/2017 08:37

Cara - those scandals in 2015 involving Chinese companies on AIM were a disgrace. I completely agree there.

They caused a lot of embarrassment to the Chinese authorities, which I'm sure are now being more vigilant.

With AFG, as with WCC, it's important to see both the opportunity and the risk. Sure, there is clearly some risk in a pure-play Chinese domestic company. But there is also opportunity. Here is a large, profitable business with a good niche in a country rapidly getting richer. It can be bought on a p/e of 1. That's an opportunity.

AFG reminds me very much at WCC when I first invested. WCC rose about 10x. I'm not expecting the same with AFG. But a 5x rise to a p/e of 5 is quite possible.

AFG's appointment last year of LO Ping, a high-calibre CFO, was a big confirmation for me with this stock.

[tradermick1] 21/3/2017 08:26

galeforce

It's a horrible situation to be in especially if you are stuck in a stock down a lot and very hard to sell but unfortunately it is a scam. They can be good for trading now and again but in the end they tend to vanish.

Go and look at JQW that was a very popular stock that ended the same way or JSI which is heading the same.

For me the only two I think are ok are Haik and Taih not that I'm saying they are worth buying but they do not look like scams (yet)

[brwo349] 20/3/2017 22:04

galeforce1

I don't think you can be helped. This is such an obvious fraud.

[galeforce1] 20/3/2017 21:18

Cara

I was invested in WCC for several years (but now a few years back). It seemed a model of a well-run, investor-friendly company.

And it was a very profitable investment. Initially it had the sort of absurd undervaluation you now see at AFG.

I haven't followed it recently

[caradog] 20/3/2017 20:38

double post

[caradog] 20/3/2017 20:38

Not to mention "Investors had doubted (sic) about its accounting practices... "

[caradog] 20/3/2017 20:36

You mean this West China Cement? Hardly something to include on your CV:





Note the line in the first report about "Analysts believe the deal collapsed because of a "business decision" given the firm's weak books."

[galeforce1] 20/3/2017 19:43

Brwo - there's nothing to suggest that these (preliminary, therefore still unaudited) accounts are false.

The CFO is experienced and respected, from her days at PWC Kuala Lumpur and West China Cement.

Your obsession about malpractice here seems to me irrational and obsessive. But we are all entitled to our opinions, however dotty they may be.

[brwo349] 20/3/2017 17:58

disgraceful

[brwo349] 20/3/2017 17:55

I am in absolutely no doubt whatsoever the accounts are false. There is not even a tiny part of me that believes they are true. Not even a minute part. The share price is the clue and why no directors or major shareholders are buying at an unbelievably cheap price.

If this is a legitimate business why was it listed on the London AIM market when 95% of the other Chinese businesses have been unmitigated disasters for shareholders. If you owned a great business like this is supposed to be the last thing you would do would list it on the AIM market.

Po Ling may be an honest person. After all how can she personally verify all the financials? It is up to the auditors to do that. Remember all the other Chinese frauds had their accounts signed off by auditors. I'm sure it is not difficult to forge an invoice for example.

I think there may be a very small real business here but nowhere near the size portrayed. Shame on the people involved with this. It's shameful. They must look on western investors as sheep to be sheared. Maybe they are right. Some deserve a good shearing but not all.

[galeforce1] 20/3/2017 16:30

Celeritas

Reasonable point.

Must admit that I know very little about Li Xianzhi, the CEO and 45% shareholder here.

It would helpful to know more about him and to meet him. Perhaps he will come to this year's AGM.

He may be embarrassed about a lack of fluency in English.

[celeritas] 20/3/2017 16:12

I was with WCC for a long time so can vouch for Po Ling, she's a good cfo who wouldn't want to risk her integrity and reputation so I'm not that concerned about the accounts.

I am concerned by the CEO who does very little to promote his company and mark it out as different from the rest, he could easily de-list which is the main worry here.