JQW Share Discussion Threads

[yump] 02/7/2015 16:53

Aren't Sheriffs supposed to patrol the actual town they are responsible for ?

Should be 'Armchair Sheriff'. Dash of water in the malt please old chap.

[geheimnis2] 02/7/2015 11:54

yes it's a possibility rick

however, they could significantly increase the value of their own holdings by using cash to buy at these "low" prices then cancelling the shares.

[43rick] 02/7/2015 11:53

Maybe because at this moment in time the share price is not an issue so far as the board is concerned. The board and the chairman's niece own such a large % of the shares that there is no chance of JQW being bought out as a result of a low bid.

[geheimnis2] 02/7/2015 11:28

in fairness, you have to wonder why the board are not commencing a share buyback

[amazon trucker] 02/7/2015 11:23

3 hours ago | By Nigel Somerville, The Deputy Sheriff of AIM

JQW – CFO walks: have the rats started to desert the s(t)inking ship?
AIM-listed JQW plc (JQW) – one of the Fujian four, from Fujian province in China announced its AGM result today, as well as the departure of Chief Financial Officer, Mr Kooi Wei Boon. Under normal circumstances, the FD departing out of the blue would not be taken well – and, indeed, JQW saw its shares slide 14% on the news – but given the general level of suspicion surrounding AIM-listed China frauds this is most unsettling news for anyone mad enough to be holding this stock.

[rupe1958] 02/7/2015 08:22

43rick - that's right. Totally crazy. There's probably 475m RMB in cash (almost £50m GBP) on the balance sheet at this point and the mcap is £15m. And the company is adding to that cash pile at the rate of £1.8m a month.
Any institutional buying and this will go rapidly north. But there's zero sign of that at the moment. The Naibu scandal has made every single Chinese company on AIM suspect. The only thing that can overcome that is time and a solid divi record.
Xena - great post. It would be interesting to track how JQW is doing on Alexa in comparison to its closest comparable rivals, which I think are youboy.com and hd360.com.

[43rick] 02/7/2015 08:07

from 2014 finals

"Strong cash position improved in 2014 by RMB 50.6 million to RMB 394.7 million despite total dividend payments of RMB 114.4 million during the year"

So current cash is likely to be well in excess of £40mn and yet the current m.cap is £15mn.

Crazy!

[mike111d] 01/7/2015 15:11

You certainly have to keep an open mind to all possibilities, so for me the potential risks of holding are presently too high.

[xenawarriorprincess] 01/7/2015 13:20

Interesting RNS's yesterday.

The CFO going is at best neutral news. If one takes the glass half empty view it could be construed as very negative, NBU was suspended a week after their CFO went, then the nomad went, and the end (to the listing) was inevitable.

Glass half full - well he was on only £50K pa, the non execs are on £48k, although presumably money goes a lot further in China than it does in London. He was an IPO expert (much made of that in his CV) who only joined the company in January 2013, the float was in December 2013, so maybe it was largely job done.

But presumably he went fairly quickly, as he was only put up for re election a month ago, and there is (as yet) no replacement - so maybe a disagreement over compensation, dividends, or growth having slowed, or something else.

Maybe we will find out, maybe not.

As for the AGM announcement revenues up 12% in 1st 4 months - disappointing as not like the 40% to 60% growth the US listed peers are achieving.

12% if calculated for the whole 1st 1/2 would give revenues of around 387MRMB vs 438MRMB for 2nd 1/2 2014. Having said that revenues always seem to be much stronger in the 2nd 1/2.

Profits down 10%, if the calculation is similar then that would give 1st 1/2 profits of 94MRMB, but if full year is to be around the 212MRMB last year than this implies a better 2nd 1/2 performance of 117MRMB. Last years comparatives were 105MRMB and 107MRMB for each of the two halves.

These figures should not be a great surprise, as it has been clear for some time that JQW has been going for growth at the expense of profits. It now appears that the emphasis on growth may be impacting revenues as well.

The increased use of external agents is increasing the number of users, but affecting revenues and profits. Presumably many of the users recruited are using the free services, whilst only 3% or so of users actually pay anything.

A quick look at Alexa shows that the recent soft performance of the company has shown up in the figures there.

This time last year JQW had a worldwide ranking of 400, today it is 540. A couple of weeks ago it was 630. The figures have been fairly soft over the last 6 months or so. Between July and October last year JQW was between 300-400 much of the time, the last 3 months they've been mostly between 500-600.

But Alexa also shows that over the last 3 months average time on site is up 18%, as is the average number of page views. All but 1% of this rise has shown up in the last 8 weeks. The significant increase in these figures should shortly show up in the worldwide ranking figures.

Perhaps that is the reason the company is confident of the full year figures, despite the first half being relatively somewhat disappointing.

So far as I'm concerned, providing they keep increasing the number of users, even if 97% don't presently pay anything, then long term, there will be value here.

[rupe1958] 30/6/2015 23:09

Loverat -

JQW's CFO is quite a young guy. He speaks very good English. I'm sure he's highly employable in the rapidly-growing Chinese e-commerce world.

He's probably been tempted by a better job in a bigger city. JQW is based (from memory) in Xinjiang in Fujian province. Probably not the most exciting place in the world.

[nw99] 30/6/2015 22:56

PPG bad Robot called it wrong big time

[flopinfo] 30/6/2015 22:12

now the FD does a runner

[flopinfo] 30/6/2015 22:11

now the FD does a runner

[loverat] 30/6/2015 18:33

I have been wondering what news will arrive here next. I was thinking recently if this is a fraud that there is often a pattern to these things.

A Chinese stock which is very lowly rated because many don't trust these companies.

Starts off really well - reports excellent figures and loads of cash. Pays a dividend.

Then a while later you get a reported slowdown in sales/or and profit.

Then you get the finance director leaving.

And then the next thing you know the non executives are scratching their heads trying to get in contact with the BOD.

I now wonder more if the same scenario is slowly playing out here.

Here you had the sellers also.

Anyone know how much in dividends NBU paid before it was suspended?.

No deramping intended and no evidence of any wrongdoing. But just think the finance director leaving is a concern and there could come a point where there are too many red flags to make this an acceptable risk.

[rupe1958] 30/6/2015 17:27

Still making £1.8m or so profit each month here, and the PE is still less than 1.

But growth is clearly flattening out and it doesn't make a lot of sense to think of this as a blue sky growth company like 58.com. It's a very profitable electronic billboard, with a strong niche in SE China.

The share price performance is going to depend on whether they prepared to distribute some of those profits as dividends.

The post-tax profits are about 10p per share. I'd like to see them distribute 2p of that in dividends for full year 2015, and commit to do the same going forward.

[qs99] 30/6/2015 15:06

CFO resigning IMO is a bad sign....have sold some of the risked loss making punt I had in here on the back of it! where is the new broker they were talking about??

[the stigologist] 30/6/2015 14:45

lol

FD doing a runner because there is loads of cash

pmsl