Gx Cleantech Discussion Threads

[philjeans] 08/12/2013 12:20

You may be right about that; but most Chinese companies are so mistrusted I doubt it'll make any difference in the medium term.

Can't really wallop the share price much lower I'd have thought considering the fundamentals and prospects.

I'm happy to add here for a value opportunity, despite the risks.

[stuffee] 08/12/2013 09:27

Well done PJ - you were braver than me!

Still no announcement as to identity of sellers last Thursday, number of shares sold and whether 3% shareholder limit breached - this is a requirement. Incredible broking performance to have trashed price by 35% by such a placing, coupled with totally ignoring disclosure rules.

Still feel Friday's episode has caused severe and unnecessary reputational damage.

[stuffee] 06/12/2013 19:43

Pretty grubby behaviour by Board and Liberum, CTEK's brokers today.

In spite of 35% share price fall early this morning, which certainly spooked the market, no prompt announcement made of reason (as required by market rules for any substantial share price movement), until 1639. It now appears fall due to certain early stage investors dumping shares in a thin and sensitive market yesterday, possibly through a mishandled placing. Instead of trying to restore confidence in such a nervous market today by immediate announcement of reason for fall, first thing this morning, certain London based non-executives first helped themselves to cheap stock at 140p today and THEN announced they "continue to view future with confidence" etc after market close at 1639 today, even expressing thanks to the selling investors etc!

Non-execs are meant to act in the interest of the company and NOT personally deal ahead of a price sensitive announcement.

Liberum, as the company's broker, should have controlled this and insisted on announcement re trading etc this morning BEFORE any directors' dealings.

Today's unnecessary trashing of the share price and the directors' behaviour will have sadly damaged the reputation of a potentially interesting investment.

[kevinneill] 06/12/2013 19:20

Hi grahamg8, yes I think you are right - I was rethinking this and if you don't take the cash option then you will get twice as many shares.
I still think it is manipulated due to the timing and am happy to let my holding ride. I think it will be back above 200 in the new year and I should have extra shares from the dividend.

Strange time for the investors to leave, just before a dividend - albeit a small one. But hey I divide when I should multiply :-)

[grahamg8] 06/12/2013 19:02

Looks like you got it in one danieldruff. Early stage investors presumably means pre IPO and they have decamped and taken their seed funds elsewhere.

Kevin Neill I think you have the calculation back to front. If the share price goes down then your 2p per share buys more of them not less. It makes the scrip more attractive relative to cash. Although the amount of money involved is not much in the grand scheme of things.

[kevinneill] 06/12/2013 11:31

When you look at the scrip dividend announcement, it is paid on the average of the selling price from 11th Dec for 4 days.

This looks like a cynical ploy to drive down the share price to half the dividend value.

Based on this I have just bought in expecting this to return to close to the previous price after the dividend is paid.

[grahamg8] 06/12/2013 11:25

Just found this apparent gem. As previous posters say the prospects look good. Did the share issue mentioned back in April take place? Could the overnight fall be a sign that it is about to be launched? Another possibility is that some of those massive receivables at H1 stage have gone down the drain.

[briangeeee] 06/12/2013 09:18

The stock is very illiquid, so some of the original holders have to take a huge discount to exit in large size. The shares will probably in the main have been placed with UK funds.

[el1te] 06/12/2013 09:03

Advfn charts that have volume shown, has a giant 1.2m sale marked for today. Same sort of thing as what hit Naibu a few months back

[brownie69] 06/12/2013 09:01

Big fall this morning! Any ideas what is going on?

[sammy_smith] 26/9/2013 16:26

Motivcom - Interim Results

[sammy_smith] 26/9/2013 16:25

China Chaintek United - Interim Results

Click the link to listen

[pjhutchy] 05/8/2013 10:54

Nice update. We need more interest here. It's very under the radar.

[ron manager] 05/8/2013 09:55

See the shares are up 7% today on the back of a positive trading update. DYOR.

Ron

Press Release 5 August 2013

China Chaintek United Co., Ltd
("ChainTek" or the "Group")

Trading Update

ChainTek (AIM: CTEK), the provider of logistics services to manufacturers of consumer goods in China, is pleased to provide the following positive trading update ahead of the Group's Interim Results for the six months ended 30 June 2013, which will be announced in late September 2013. Financial information contained in this announcement for the six months period is unaudited.

The Board is pleased to confirm that trading for the period is in line with management's expectations with expected revenues of approximately RMB167 million (approximately GBP18 million), which represents a 6% increase to the comparable period in 2012. Of this, the logistics services business represented approximately RMB144 million (approximately GBP15 million), with the inventory solutions business accounting for approximately RMB23 million (approximately GBP3 million).

In line with ChainTek's stated strategy of diversifying its logistics services' client base, 30% of revenues in the period came from industries other than sport shoes and apparel, compared to 28% in the equivalent period in 2012. Since the start of the year, the Group has added fourteennew customers in its logistics services business (covering sectors including shoes and apparel, food, building materials and automobile parts) and one new customer in its inventory solutions business.

As previously announced on 19 March 2013, ChainTek intends to build a logistics park which will be located on a plot of land in an industrial zone in Jinjiang just 14km from the Group's existing operational headquarters, and which already houses a number of ChainTek's existing manufacturer customers. The Group has entered into agreements with the local government and the developer of the logistics park to acquire the Land Use Right over the plot of land and will satisfy the final condition of the acquisition when it pays the final tranche of the consideration, which it anticipates doing in October 2013.

In May 2013, the Chinese State Council issued new guidance notes on accelerating the improvement of logistics infrastructure across China, focused on developing nationwide logistics hardware facilities, reducing inappropriate road tolls, and constructing regional logistics centres. These new policies further demonstrate the Chinese government's support of the logistics industry as a whole in China. The Directors of ChainTek believe these policies will be beneficial to the Group's business model in the long term, as well as its near-term plan to construct a modern logistics park.

Xu Meijin, Chief Executive Officer of ChainTek, said: "The Board is pleased to report that trading across the Group's trading divisions is performing well and in line with our expectations. In the period, the Board has worked hard to diversify our client base in the logistics division and has successfully expanded into new sectors. The Board is also encouraged to see that the Chinese State Council is supporting the logistics industry by accelerating the improvement of infrastructure across the country, and is confident that this will further underpin the Group's long term strategy."

- Ends -

[stuffee] 05/4/2013 11:25

PJH - re placing

Interesting question re share price reaction to a £32m placing.

Firstly I do hope brokers are capable of handling the placing - track record is not great and they have failed to generate much interest in stock to date.

Assuming they do manage to raise the funds, I feel prospects look pretty good. CTEK's existing facilities are at capacity and they are enjoying great demand for new business. The new funds would finance their vast new planned distribution centre which will increase capacity five fold according to Liberum.

I also suggest increased liquidity in stock will attract more institutional interest which should improve rating. I guess initially shares might soften a bit due to large new issue at a significant discount, but thereafter could really perform as market discounts impact of operations from the new centre, expected to open in late 2014.

Might be wiser to avoid buying more till placing sorted. Thereafter this could fly.

[pjhutchy] 04/4/2013 22:28

Think I'm going to hold the shares i have and wait for conformation of a placing and watching how the market reacts before adding any more. Other good value shares I have that ar e worth researching are gable holdings gah, vislink Vlk, zytronic zyt, diverse income trust divi, camkids, Cupid cup, supergroup sgp, entertainment one Eto, red24 redt and on the plus markets one media plc, sprue aegis, aquasource algae

[pjhutchy] 04/4/2013 22:14

Thanks for sharing the updates that appeared on the website. Yes looks like we may be getting a share placing to raise more cash to build the new facility. It does say the placing if it happens will be at a 20 percent discount to the current shareprice would this mean that the shareprice would hold up ok if a placing is announced? It seems like they have to either stay put and not grow the business or raise funds via a placing to continue to grow. Looks like that the reason they listed on the London stock exchange. Fair enough I suppose. Has anyon e got any thoughts on how the shareprice will react if they do announce a share placing? Thanks

[nfs] 04/4/2013 16:22

A quick look suggests limited growth to allow for the new warehouse investment to wash through,no bank would lend to a non state owned business without asset backing,dilution coming
Phrases such as bang next door and just crack on are perhaps unusual in a broker note as well!

[stuffee] 04/4/2013 15:27

Greasynut

CTEK do operate their own smaller existing distribution centres and appear only to use third parties for haulage to the ultimate customer. They are planning to construct their vast new 145,000 sq m centre.

Incidentally the PR is slowly awaking. I see they have just put up four Liberum analysts' research notes on their web site this morning, all published over last six months. Maybe they read this bulletin board!

In their 2 April note, their corporate brokers refer to a £32m share issue in April to help finance their new distribution centre. Interesting Investor Relations where their corporate broker announces such highly price sensitive share issue before company informs market. Understandably the note refers to capacity constraints restricting growth until new warehouse is operational.

I will read the research notes in detail tonight.