Geong Share Discussion Threads

[nilip] 20/4/2012 11:09

Agree with comments that this looks like a very good business on face value and the company is not only keeping it's existing clients (which would imply the clients are happy with the services provided) but furthermore they're winning new clients. That's got to account for a lot in todays climate.

Agree, mgmt are letting the company down.

Good business, not so good managament.

All things considered and with the share price on the floor now, I wouldn't be surprised to see an approach for the company.

Clearly very cheap, that's a given considering cash and list of growing clients and demand for it's services.

Getting rid of the board could well happen indirectly by this company getting taken over soon imho.

[judgement] 20/4/2012 11:08

"In addition a long standing global delivery agreement with a major partner was
anticipated to deliver significant revenues in the final quarter of the
financial year. In the event, only a third of these anticipated IaaS contracts
were delivered."

When they make IAAS sales, they do the work, ship the product, and never get paid.

The new and innovative strategy to save the company millions is to not sell the stuff in the first place. Performance should therefore be significantly up on previous years.

[simon templar qc] 20/4/2012 11:07

Neither did I like the mangement. The whole set up did not look right.

[pro_s2009] 20/4/2012 11:07

The writing was on the wall.



Change from a high profile auditor in China, to one with a couple of people.

Token gesture director small buy.

Change of Nomad.



Then the bad news............. same old same old.

[staddles] 20/4/2012 11:04

Well, glad I sold out last week, but having bought in the 40s and added since my collective loss mus be close to 60%!

[pro_s2009] 20/4/2012 11:03

Did you listen to me ?

Pro_S2009 - 27 Mar'12 - 14:55 - 20062 of 20195

Small "token gesture" buys are often a sign of bad news to come, at which point the director shrugs his shoulders and says "well I just purchased some shares recently and have lost money as well, I did not know this bad news was coming, honest....."

[simon templar qc] 20/4/2012 10:59

This was on my radar but avoided it due to cloudy accounts. Seems the ridiculous lowly pe ratio was entirely justified.

[mister md] 20/4/2012 10:55

"GEONG is an internet solutions and service software company managed by a world class management and professional team who collectively own 26% of the
business"

[jwe] 20/4/2012 10:53

Have to say,unfortunately i agree.
I feel it impossible to put any possible spin on this whatsoever.At best it looks like there was a clear attempt by the management to mislead the market on Feb 22nd when they must have already known Q4 was going to be bad

[chrisis33] 20/4/2012 10:51

rajauk - nothing wrong with AIM companies per se, but many Chinese listings do seem to have been beset with problems.

A lesson I've learned, albeit a tad tenuous, is that if a company can't produce an effective and professional looking website then possibly it's best to avoid.

[geheimnis2] 20/4/2012 10:49

i hope nobody was fooled by ratty's idiot ramping on this one

disgraceful

[joe say] 20/4/2012 10:48

should have sold when we had the previous shenanigans - management absolutely useless, and the sad fact is I was aware of it

whilst I should only blame myself, i do get bitter at the lack of warnings etc when this clearly should have been known by the company

In true football parlance - sack the board

[markt] 20/4/2012 10:46

...well....maybe one lesson...an old one...
...if a company operation is cloudy or not clear.....or doubts about the quality of the directors....

then best to invest in something which doesn't have those problems....
(fortunately I stayed away...although I've been bitten by other dubious companies/BODs in the past)

----

and imho shows that the information flow to their shareholders of shares listed in London is ...imho...a farce !

(imo this co. should have provided much better financial info in the past...and have forewarned in advance about trade..rather than only after it has all happened.....they knew, but kept it secret from shareholders...

[rajauk] 20/4/2012 10:46

Well i sold all my cfd's today but plan to hold on to the shares I own outright as its not worth selling. A lesson Ihave learnt today is to be wary of investing in AIM companies especially that are chinese. Have made two of my biggest losses ever on AIM comanies with chinese connections - GNG and RCG.

[goliard] 20/4/2012 10:45

Surely they must have known about some of these issues earlier. This smells like a classic delayed RNS and I will be surprised if there doesn't turn out to be fraud going on here. Terrible management and to be completely avoided.

[the news girl] 20/4/2012 10:36

DJ Geong International Sees FY Revenue, Operating Profit Down On Weak 4Q

LONDON (Dow Jones)-- Geong International Ltd. (GNG.LN), an internet software solutions provider and operator for large enterprises in China, announced Friday it expects to report revenue for fiscal 2012 materially below the level recorded last year as a result of lower than expected performance fees and contract wins in the fourth quarter, and said operating profit will be significantly reduced.

MAIN FACTS:

-Performance fees lower than anticipated as the impact of the slowing economic growth in China has caused many of the KPI's set by the company's clients proving optimistic

-Only a third of anticipated IaaS contracts were delivered resulting from an agreement with a partner that was expected to deliver significant revenues in 4Q; attributes missed contracts to uncertain economic environment

-Cash on March 31 GBP5.3 million

-Will incur non-recurring charge to profits of GBP350,000 from an aborted acquisition

-Remains confident of GEONG's business model

-Still getting new IaaS clients in its core markets and new industries with two strategic partners; did not lose IaaS clients in 4Q

-SaaS business gained 2 clients during 4Q, is in negotiations with 5 potential clients

-Shares at 0925 GMT down 4 pence, or 26%, at 12 pence valuing the company at GBP4.52 million.

-By Ed Ballard, Dow Jones Newswires; 44-20-7842-9375; [e-mail]

(END) Dow Jones Newswires

April 20, 2012 05:32 ET (09:32 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

[rivaldo] 20/4/2012 10:33

:o((

Well, that's a first for GNG in terms of warnings on core trading as opposed to one-offs.

If operating profits are "significantly reduced" from last year's £2.6m, what level are we looking at - maybe £1.5m at the bottom end, maybe £2.2m at the top end?

The only crumb of "comfort" is that the share price was so low to start with, but of course sentiment will play its part in determining at what level the share price stabilises at.

The current £4.3m m/cap compares with £5.3m cash (again we have to ask net or gross) and an operating profit as stated above which could be anywhere from say £1.5m upwards.

I'll keep my shares as it's not worth selling at these levels - but then I thought that at 20p etc etc. At least the final paragraph sounds encouraging long-term for the business as a whole.

[glasshalfull] 20/4/2012 10:33

My sympathies also to holders. I'm surprised at the timing of this announcement following a recent roadshow extolling the virtues of the company.

I'm sure GNG is super cheap BUT I don't believe the management team have any credibility and I'm sure that there are many PIs who have followed the GNG story over the years and like me would never invest - no matter how compelling the valuation metrics appear.

GLA

Regards
GHF

[judgement] 20/4/2012 10:33

They've warned on certain issues, but there is much not announced about which investors might be wary.

[hippo] 20/4/2012 10:29

JWE - agree, but have to say, oneholder in particular deserves everything he gets..................

[janeann] 20/4/2012 10:28

well well..... would be nice to know just what went on with the trades yesterday

[jwe] 20/4/2012 10:28

I almost made a comment here earlier regarding the nice bounce for holders here following what looked like the clearance of a large overhang.
This RNS is a kick in the teeth,and if i were a holder i`d want to know how they can possibly release this given their update on 22nd Feb when the year only had 1 month left to run.Frankly it stinks
Sympathies to holders.I think it needs a large act of faith to remain invested here but good luck if you choose to hold