Camkids Share Discussion Threads

[philjeans] 04/2/2015 14:47

A 12% net reduction in clean cash profits is nothing compared to the likes of TESCO; BP; SHELL; BHS; BG; ASOS; and hundreds more UK businesses reporting every day on OUR MARKET!

Wake up numpties and don't let the lying shorters take your money!

[edmundshaw] 04/2/2015 14:35

Yes, Jak, in some ways Naibu is similar - same province of the same country, listing at a similar time with the same helper company, similar products on the face of it.

That is why Camkids has taken the big hit that it has.

But Camkids is not Naibu. Deep research is required to differentiate the good from the bad in China, one-liners get no-one anywhere.

After researching this and other similar companies you have to ask yourself: what is the chance it is a fraud? and if not, what are its prospects?

You have to get very, very bad answers to those questions to justify a PER of 1. Personally, I think there is a good chance this is an honest, respectable company going through a bit of a rough trading environment, so worth a PE around 8 to 10 in the UK. The China risks do not justify a risk multiplier anywhere near 10 for me, so this is a strong if speculative buy imo.

[philjeans] 04/2/2015 12:42

They made net profit of £21.6M in 2013 so a 12% reduction, as forecast today, would generate say £17M to be on the safe side.

Because of the lying shorters, the M/C is currently £15M and they have £40 million net cash with no debt!

P/E SAY 0.8.

Unless you think everyone connected to this business is a criminal - it looks very undervalued.

[philjeans] 04/2/2015 12:21

Companies NEVER audit figures for trading statements - you numpties!

Only full year figures are EVER audited!

Wake up you losers.

Back to 40p very quickly once the lying Shorters close out.

[salpara111] 04/2/2015 12:11

I love the way that every statement is tagged (unaudited)
The simple reality is that China is not ready to list companies on western stock markets.
This company would appear to be a total no brainer given their large cash pile but the fact that I find myself questioning whether the money really exists means that I will never invest in companies like this.

[spectoacc] 04/2/2015 11:24

@Edmund - so why don't they return some of that cash, if they're sufficiently unable to find a use for it that they put RMB100m on a 1yr fix?

Suspect the way it will play out is that they'll end up buying other co's/more land/whatever with it. All at arm's length/sellers no connection to the directors etc etc.

Edit - I remain a holder.

[edmundshaw] 04/2/2015 11:05

Lying to UK investors is one thing. Patent fraud in China itself is not worth it, though, the penaties are too harsh.

Camkids has been in a solid and verifiable business over 10 years. Naibu was always more suspect, and CAMK is unfortunate to be tarred with the same brush.

Of course it is conceivable that the board of any chinese firm listed on AIM is looking for a cash exit courtesy of UK investors. The reality of this is what has made the price so low. But it is far from inevitable, and differentiating the good, well run and essentially honest companies from the bad or poorly run is the trick. Each must decide for him/herself.

Personally this looks to me a decent firm (probably), going through a tough spell in the economic cycle, and with the rating it is on now the odds are very much in favour of a punt, if you think of it in gambling terms.

[jedrus07] 04/2/2015 10:34

Serious buying going through... Maybe the directors realised that if they simply buy, they triple the SP?

[edmundshaw] 04/2/2015 10:28

Putting £10m into a verifiable (easily auditable) 12 month deposit account at 3% is excellent transparency. Good to see, though begs the question why not do it earlier?

[chevalierdaven] 04/2/2015 10:25

The proverbial dead cat bounce...

they are just covering their asses with the "commitment to AIM listing" until the inevitable happens, at 10 p or less, in due course. Who would really still believe they are playing by the book? I have to say, well done; yet another successful wealth transfer in hard offshore currency from greedy stupid AIM investors to clever PRC Chinese fraud masters. Congrats!

[lqs] 04/2/2015 09:42

Laughable RNS. Lets get this straight. Theyve decided to buy land and build a new factory to cope with ever increasing orders. That is even though orders are being cancelled. OK forget about that. So they buy the land and prepare to build the new factory that they don't need but then they change their mind and decide just to rent a factory instead.

[trentendboy] 04/2/2015 09:41

Note the cash is UNAUDITED. Why not just audit it? Very strange.

[philjeans] 04/2/2015 09:32

Nice - 57p in cash with no debt and STILL hugely profitable after a mere 12% forecast fall in earnings!

[philjeans] 04/2/2015 09:30

04 February 2015

Camkids Group plc

("Camkids", the "Company" or the "Group")

Trading update and statement on share price

Camkids Group plc (AIM: CAMK), a leading Chinese designer, manufacturer and distributor of branded outdoor clothing, footwear and equipment for children and teenagers, announces the following trading update.

As explained in the Group's trading announcement on 17 November 2014, the Group's distributors are adopting a cautious approach towards 2015 given the macro-economic backdrop in China and the reduction in consumer spending. In light of this backdrop, in December 2014 certain of the Group's distributors requested the postponement or cancellation of some orders which, by way of a commercial gesture aimed at maintaining good relationships with certain of the Group's key distributors, totalled RMB 79m (unaudited). As a result of this the Directors anticipate that the Group's net profit after tax will be approximately 12.5% (unaudited) behind market forecasts. The Board has been reviewing the Group's planned cost base for 2015 with a view to maintaining the Group's net profit as much as possible and further announcements will be made at the appropriate time.

As announced on 29 September 2014, the Group has purchased an additional piece of land not far away from the existing factory in order to develop the Group's new facilities. Construction had originally been scheduled to commence in early 2015. As part of the Group's review of its planned cost base, the Group has decided to delay the construction whilst it evaluates other potentially cheaper alternatives, including leasing or purchasing an existing one.

The Group's cash balances as at 31 December 2014 were RMB 410m (unaudited). The Group is increasingly looking to manage its treasury function in a more pro-active manner and in April 2014 placed approximately RMB 100m in a 12 month deposit account at a 3% pa interest rate.

The Directors note the recent falls in the Company's share price and consider that the current price fundamentally undervalues the Group. As stated above, the Group's cash balances as at 31 December 2014 were RMB 410m (unaudited), equal to 57p per share or 370% of the Company's market capitalisation as at 3 February 2015. The Group remains committed to its AIM listing.

- Ends -

[srpactive] 04/2/2015 09:19

Yes the cash element is very interesting, have been following these for years.

[philjeans] 04/2/2015 09:14

Spivs, liers and fraudsters closing their shorts as they BUY back in.

Back to 40p in short order methinks!

[jamielein] 04/2/2015 08:29

If the shares are so cheap why don't they use some of that cash to start a share buyback program? Why aren't the directors buying whatever they can get at these prices?

edit: just read topvest's post and I think that probably answers my question

[r g fletcher] 30/1/2015 09:18

When theres nothing left to steal.

[chevalierdaven] 30/1/2015 09:13

From 138p to 16 p in 18 months.When will it get suspended, ending our sufferings?

[islam1] 28/1/2015 14:49

Topvest

What you say is very disturbing, if true

[poley] 23/1/2015 13:06

''The Chinese crooks make money, the City crony capitalists, PR spivs, nomads and brokers make money. And poor private investirs on the AIM Casino lose money. This is so shockingly nauseous, it surely cannot continue?''


The Finance industry - without doubt the most corrupt in the world by a landslide.
Be wary of the silky smooth promoters in sharp suits.
Any PR spivs on here?